Mulberry Share Discussion Threads

[clocktower] 06/2/2024 13:09:32

T A Total income 2022 £1,847.000.00 2023 - £1,158.000.00

So 12,000 shares at £1.20 = £14,400.00 is less than a weeks salary, not to forget all the options he has, so I guess he really would like to see the share price much higher but he needs to deliver better results than he has to date.

I think it is over a million options he has to date - correct me if I am wrong.

[clocktower] 06/2/2024 12:27:48

Showing a little faith but then it's not like putting his shirt on it.

How much salary and perks does he get?

[clocktower] 18/1/2024 12:08:58

Kinwah your correct about the focus, trying to sell the products you talk of and others is a folly and just goes to show how out of touch the management is.

They used to be known for their Luggage and that is where the money is not sunglasses etc.

[jbfnfn] 18/1/2024 12:03:08

There have been some genuine headwinds for this business. For example back in 2019 there were about 1 million mainland Chinese visitors to the UK. Even without VAT free shopping some of them would have bought something from Mulberry at places like Bicester village.

Covid saw that 1 million down to a few thousand. In 2023 looks like it may get back up toward 250,000 mainland Chinese visitors. That's still only a quarter of the 2019 number.

The costs of the business have gone up because they have been buying out their partners in overseas operations.

The interests of minority shareholders may not be aligned with the majority shareholder the Ong's. Maybe the Ong's can rent out property to Mulberry outlets around the world and so make money that way. That way the Ong's can still make money whether Mulberry does or not.

There should be a space in the market for a UK based luxury handbag maker. Whether the current business strategy is the right one is the question.

[kinwah] 18/1/2024 09:06:53

That looks like a dash for cash. Begs the question though what idiot would pay £140 for a Mulberry luggage tag in the first place. Should Mulberry really be selling sunglasses and leather phone cases? I think some hard questions need to be asked about stock levels and focus. It's going to be tricky shifting those iphone 13 cases.

[clocktower] 17/1/2024 14:29:01

I guess MS wanted to make sure Mulberry Ranges stayed in Frasers and he may hold on because he is one of the few that can expend their business in the UK and further afield in time.

Shows how tuff business is when you look at the sale range - deep price cuts, even selling the famous Bayswater Bag at a cut price.

[kinwah] 17/1/2024 10:54:01

I thought the trading statement was in line with what I was expecting. What concerns me is the rapid rise in borrowings at the half year. These look set to rise further by the end of the year. I really can't see what MA is holding on for. I think his only option is to sell his stake to the majority shareholders at a discount triggering a mandatory bid and delisting. He exited French Connection when he lost any strategic rationale for keeping his stake and I'm expecting a repeat here if he can get the deal done.

[clocktower] 17/1/2024 09:06:57

Kinwah todays news will only raise more concerns, if it were not for Mike Ashley then I think you might be correct and he might become a seller as his investment now looks doomed imo.

DYOR

[kinwah] 12/1/2024 22:18:21

It feels like it is slipping off the stock market. The Mulberry brand is in a no-mans land between much cheaper labels like Coach and Kate Spade and the genuine premium brands from Chloe up to LV and Gucci. MA would probably vote against a delisting resolution but it could be done unofficially by MUL missing deadlines for announcing its final results. MUL looks like a rich people's plaything with very little protection for the remaining minority shareholders.

[valuschmalu] 12/1/2024 20:21:48

I'm not sure its toast just yet but feels like a rights issue is on the way bar a miraculous Christmas trading period. The interims were shocking and the balance sheet looks fully stretched to me. Feels like they need to raise at least £20m. It is poor management to let spending get out of control without the revenue growth and balance sheet to support it

[ny boy] 12/1/2024 16:33:34

Not a luxury brand really, lost in the middle

[clocktower] 30/11/2023 07:40:14

Well it’s cooked, losses are going to keep mounting and the interest rates on debt will help to cripple what Is now a zombie company.

It is likely to go the same way as Pittards before to long, bar the brand has value impo.

Mike has got this one wrong it seems...

[jbfnfn] 23/11/2023 16:55:24

The Ong's still want Mulberry.

Ong Beng Seng and Christina Ong have control of the business with 56% of the shares. Melissa Ong is a director.

Ashley has about 37% of the shares but I'm not sure that's bought him any influence at all.

That leaves about 7% of the shares as a free float that's only 6 or 7 million pounds at the current share price.

Ashley probably has a higher net worth than the Ong's, but both parties are billionaires. The Ong's are old money based in Singapore, see the film "Crazy Rich Asians". Except for a lot of money I'm not sure Ashley has anything in common with the Ong's. I would be very surprised if they moved in the same social circles.

The Ong's may not care what the share price is. I have a very small holding here I'm a penny punter. Is the current business strategy the correct one? If they reduced costs could a decently profitable business emerge or would that devalue the brand. How can they compete with LVMH? Do they need to?

[clocktower] 17/11/2023 07:51:42

Well it’s been a few years since the shares were languishing this low, in fact was it not when MA picked up a stake at around £1.50 if my memory is correct.

The director buy did not seem to give further confidence either.

So will the Far Eastern sales be strong enough to start to see the company return to its former glory?

Or who would want Mulberry ?

[clocktower] 04/8/2023 14:38:12

How much of a sales impact have on UK figures through the shutting of the Bond Street out let and in general because of the VAT-free situation in the UK.

I guess some of those customers could nip off to the Channel Islands (Guernsey) and get the bags VAT Free as they do not impose any tax as far as I am aware.

I guess one could pre-order online for delivery to there to a post box address VAT-Free if there are no shops that sell Mulberry Bags.

[dennisbergkamp] 03/8/2023 13:12:54

Sunak the numpty
D

[clocktower] 03/8/2023 12:42:21

"Following the decision, Mulberry revealed it would be shuttering its Bond Street store which first opened in 1995.

A Mulberry spokesman said at the time: “The lack of VAT-free shopping in the UK has been particularly felt on Bond Street, which has always been an iconic shopping destination for tourists. The decline in visitors has impacted footfall and sales.”

"Harrods has swapped out some of its most expensive handbags with £250 versions in airport shops as it accused Rishi Sunak’s tourist tax of deterring wealthy overseas customers."

[clocktower] 19/7/2023 12:51:01

The market seems to like those that enrich themselves and dilute other shareholders in due course.

[clocktower] 28/6/2023 07:34:34

What a mess they have got the company into, from a net cash position of £25.7 million to just £0.7 million in one year, and the noose of debt closing in around it’s neck.

Revenue increases in some areas mean nothing with inflation and costs rising even faster. Investment in taking full control may not turn out to be a wise move, as the company lose the expertise that these partnerships provided.

Drop in dividend should reflect on the share price

[clocktower] 19/6/2023 12:00:46

With figures due, are we going to see more doom and gloom and the company depleting their cash even further, or is there going to be a sell off before the results, or can the business in China and Korea life spirits and provide more confidence to lift the share price?

[clocktower] 02/6/2023 18:34:05

Trouble brewing:

Mike Ashley prepares for boardroom raid at Mulberry

[clocktower] 21/4/2023 12:55:22

Well gregpeck7, it was good from the perspective that sales have been good in what has and is troubled times, and one could not describe the sales otherwise, as being a positive feature of the RNS.

However one must then look deeper into the situation, and see how these figures have been achieved.

It then becomes apparent that the cash pile has been used to create revenue but has dwindled substantially in the last twelve months, as can be seen by the figures in post 483.

In my view the market just took it on face value and did not take all information into account, and you must accept there were very few purchases that took the share price up slightly. So it was surprising that folks would buy the stock at these levels when the cash situation has turned drastically.

If it falls again in the next six months, it could soon find itself deep in debt, so it will have to run faster to cover the costs of loans.

I see it going back down towards the £1.50 mark in the next half, all impo.

Hopefully it gets taken over and then, and it will go at a big premium.

DYOR

[gregpeck7] 20/4/2023 21:47:30

You say a very good trading statement then you say surprisingly the market likes it. You really are a complete idiot.

[clocktower] 20/4/2023 16:53:33

Surprisingly - The market seemed to like the TS.

With a drop in cash to the extent it has leaves them in a very week position imo , if they want to invest in upgrades or new stores. How soon will they turn to bank finance? Then what, if any decline in sales comes out of the blue in China?

Todays RNS:

"The Group continued to invest in its global brand awareness and the development of its business model during FY23 and remains focused on investing for future growth. As a result, net cash balances as at 1 April 2023 are expected to be c.£0.8 million, with further headroom available under its borrowing facilities."


29 March 2022 - Trading update stated:

"The Group's balance sheet remains strong with net cash balances at FY22 expected to be in excess of £20 million. The Group intends to announce its FY22 results on 29 June 2022."

The results RNS 29June 2022


"CASHFLOW

The net increase in cash and cash equivalents of £13.9m (2021: £4.2m) comprises cash received on exit of the Paris lease, and working capital benefits, partially offset by increased inventories, and capital expenditure. During the year the Group paid £13.7m (2021: £7.7m) relating to the principle element of lease liabilities, which included £4.7m of deferred lease liabilities from the prior period. "
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