Mulberry (MUL) is in fine fettle under the creative direction of Johnny Coca. The top line has positive momentum, gross margins have stabilised and pre-tax profits are on the rise. The group has also pushed ahead with new initiatives such as Mulberry Asia - a new entity responsible for running the Chinese, Hong Kong and Taiwanese operations, formed with its majority shareholder Challice.
Product launches like the Zipped Bayswater bag, and a digital focus, have helped. International retail sales rose by 1 per cent last year, or 7 per cent on a like-for-like basis, and this is likely to improve further as the division in North Asia moves from a wholesale operation to a retail one this year. It will, however, dampen wholesale revenues, which grew strongly last year, up 7 per cent to £39.8m.
But there are concerns regarding current trading: like-for-like retail sales rose just 1 per cent for the 10 weeks to 3 June, and domestic demand in the UK is softening. International growth is also weaker, albeit in "non-strategic" locations.
Analysts at Barclays expect pre-tax profits of £9m for the year ending March 2018, giving EPS of 10p, compared to £7.5m and 10p in FY2017.
MULBERRY (MUL) | ||||
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ORD PRICE: | 1,119p | MARKET VALUE: | £664m | |
TOUCH: | 1,056-1,119p | 12-MONTH HIGH: | 1,158p | LOW: 945p |
DIVIDEND YIELD: | 0.4% | PE RATIO: | 133 | |
NET ASSET VALUE: | 143p | NET CASH: | £21m |
Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2013 | 165 | 26.0 | 32.2 | 5.0 |
2014 | 163 | 14.0 | 14.5 | 5.0 |
2015 | 149 | 1.9 | -2.3 | 5.0 |
2016 | 156 | 6.2 | 4.5 | 5.0 |
2017 | 168 | 7.5 | 8.4 | 5.0 |
% change | +8 | +21 | +87 | - |
Ex-div: 26 Oct Payment: 23 Nov |