Good news from Mulberry on "robust" trading, sales and profits to beat forecasts
Mulberry delivered a good – albeit short – trading update on Tuesday and said that the luxury brand has seen “robust” sales in the second half of the year that’s ending on April 2.
That extended the impressive sales trend delivered in the first half of the financial year and it means that group revenue for the 12 months will be “moderately ahead” of current expectations. The company added that its gross margins have been maintained.
It's good news for the company that has had its ups and downs in recent years and clear evidence that it's recovering well from the devastation of the pandemic period.
The business added that it has taken the opportunity to increase its marketing investment in the second half to further build global brand awareness. And despite this extra spending, its profit for the year will also be moderately ahead of current expectations.
Given that the group's balance sheet remains strong with net cash balances at the year-end expected to be more than £20 million, it appears to be in a good position.
The encouraging update comes after a period in which the company has been very busy on the launch front, unveiling its new Softie bag series, as well as collaborations with Nicholas Daley and Richard Malone. It has also been increasing its UK production with around 60% of its products made in Britain as of last November, up from 50%.
Apart from that £20 million, it didn't give any specific monetary figures or percentages for its revenues and profits, so we'll have to wait until the full-year results are announced to find out exactly how the company is faring. They’ll be released on June 29.
The company’s shares rose in pre-market-opening trading on Tuesday and were trading at around 300p, giving it a total capitalisation of just over £180 million. This was 50% higher than its value as recently as March 8 and nearly 15% higher over the past year. However, a decade ago the shares were trading at 2,249p.
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