LONDON (ShareCast) - Panmure Gordon has reiterated its buy recommendation on luxury fashion brand Mulberry, saying that today’s appointment of a new Chief Executive “makes perfect sense to us”.

The firm said today that Bruno Guillon, currently the Managing Director of Hermes France, will become the new Chief Executive from 1 March 2012, while current Chief Executive and Chairman Godfrey Davis will continue as the non-executive Chairman after a three-month handover.

“It is logical for Mulberry to seek to add to its top management team someone with the right global brand management skills. This should enable it to move on to the next stage of its development, which is to become a truly global brand with sales of over £1bn, rather than barely more than £100m,” said analyst Philip Dorgan.

A 2,000p target price is kept.

Shares were 6.74% higher at 1,505p by 12:50 on Wednesday.

BC

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