Mulberry's has said that its plans to turn itself into a global luxury brand have affected profitability in the company during the first half of the year.

The company, which is based in London and Somerset, said that its profits fell 28 per cent during the first half profit as its turnaround plan and international expansion affected profitability. The company offers handbags named after stars including Aexa Chung and Lana Del Rey and is now looking to revive its brand as a luxury brand.

Bruno Guillon, Mulberry's chief executive said, "It is important to not forget our project to transform this UK success story into a worldwide success. We are facing challenges but we are still growing and we are encouraged by our international growth and our margin improvement."

The company has said that it is planning to open a large store in Rue Saint-Honoré in Paris under its plans to target world cities with high-spending tourists. The company is aiming to open stores across Asia and the US and wants to attract new customers from newer parts of the worlds. Mulberry is due to open another 15 stores during the coming year.