(MENAFN- AFP) British luxury handbag maker Mulberry issued a profits warning on Wednesday after sales dived over the key Christmas period, sparking a collapse in its share price.Retail sales sank seven percent in the eight weeks to January 25, compared with performance in the same period of the group's previous financial year, Mulberry said in a trading update. In another heavy blow, the firm experienced poor wholesale orders in South Korea -- its largest Asian market -- as a result of challenging conditions."The lower than anticipated level of sales is expected to result in profit before tax for the year ending 31 March 2014 being substantially below current market expectations," the group said in a gloomy statement.In reaction, Mulberry shares slumped 27.13 percent to 655.5 pence in morning deals on the London stock market."Due to tough trading conditions over the Christmas period which saw significant discounting across the market, Mulberry has experienced lower than expected UK retail sales which, together with wholesale order cancellations from Korea, will adversely impact our profit this year," added chief executive Bruno Guillon.
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