Mulberry Share Discussion Threads

[gregpeck7] 17/11/2022 16:36

Yep, I think there is a chance this is the start of another big move. When these move they really go...

LVMH PE is about 27
Hermes is about 50
Dior 20
Prada 20

You get the idea...

Mulberry probs have about 30m cash in the bank, so 120m enterprise value... Ridiculous really. Just a shame how quick it moves, gives very little chance for a decent top up!

[csmwssk12hu] 17/11/2022 16:35

Same again tomorrow will be nice

[csmwssk12hu] 17/11/2022 16:20

Your right Greg I just looked back and in 18 months these went from 280 to 2225 after last recession, staggering really

[gregpeck7] 17/11/2022 16:00

The general market has created a lot of bargains

[csmwssk12hu] 17/11/2022 15:59

They do look cheap, maybe tonight after close or tomorrow a statement ahead of results?

[aishah] 17/11/2022 15:58

Read across from Burberry report which was strong? Mkt cap COB yesterday was only £126m!

[gregpeck7] 17/11/2022 15:57

FINANCIAL PERFORMANCE



When you read the below, I think its pretty clear though. It is a bargain.

Our strategy to increase full-price sales helped improve our financial performance during the year. This combined with our agile supply chain resulted in significantly less end of season inventory and a reduction in discounting in the sale periods and our outlet stores compared to previous years. This strengthened our cash position, enabling us to invest more in the business. We continue to refine our store network and our cash position was materially strengthened by the profit on disposal of our Paris lease in July 2021.

Group revenue increased by 32% over the prior year, slightly ahead of pre-COVID levels, and profit before tax was GBP21.3m (2021: profit before tax GBP4.6m), which included a one-off profit on disposal of Paris lease of GBP5.7m. The financial strength of the Group, reflects the benefits of the mitigating steps we took during the pandemic and the positive consumer reaction to our products.

Our business and infrastructure responded well to the growth in demand following the easing of COVID-19 restrictions. Digital sales were 31% of Group revenue in the period, lower than last year when stores were closed, but up from 24% in 2020, reflecting the ongoing strength of this channel. China retail sales increased by 59% and South Korea retail sales increased by 11%, helping us reach 28% growth in overall Asia-Pacific retail sales.

Gross margin increased to 71.7% (2021: 63.6%) supported by our strategic focus on full-price sales and increased volume efficiencies. We ended the year in a strong cash position, with net cash of GBP25.7m (2021: GBP11.8m) and deferred liabilities of GBPnil (2021: GBP4.7m).

In view of this encouraging performance, and the Group's substantial cash reserves, we progressively increased marketing expenditure to continue building global brand awareness.

Projects are also in place to move the Group's legacy systems forward, and to develop the next generation of digital and omni-channel platforms. We expect this to require increased capital expenditure in the current year and beyond.

CURRENT TRADING AND OUTLOOK

Group revenue for the first 12 weeks of the new financial year is 5% ahead of last year, supported by our wholesale business up 29%.

[csmwssk12hu] 17/11/2022 15:55

Why do people trade 1 or 2 shares? must cost more to trade

[csmwssk12hu] 17/11/2022 15:52

Results in 13 days probably just finalising then now

[gregpeck7] 17/11/2022 15:51

Is the half year report due this month? Or trading update.. The last update was VERY strong and there was little to no reaction which was a bit weird.. Is it just catching up with the market? I added a few today but nothing major.

[gregpeck7] 17/11/2022 15:49

TBH moth luxury brands trader at P/E well over 30.. This is cheap. So could be just re rating. But agree, its flying. It went to 2500p before... I think it could be a run up starting.

[aishah] 17/11/2022 15:48

Surely company has to issue a statement?

[csmwssk12hu] 17/11/2022 15:37

If there is a bid I’m going to kick myself for sitting watching, just checked for 3000 it’s 319 to buy, I just don’t know what price it would be at, with £25m net cash and no debt and profit around £30m this year say 12 times would be £385m or so around 625p per share, if that happens happy days, I’ve took a small punt just in case fomo imho dyor I’ve got 1000 at 2.90 not the biggest deal in the world but if it did get a bid at double it’s a good feeling, also if through all the gloom they are at over £2 it’s not a disaster, firm believer in the market knows before we do

[csmwssk12hu] 17/11/2022 15:35

There must be something now it’s just going up on nothing and series of buys, things I can think of are
China opening up and ditching zero covid policy which will have a huge positive impact for these
One of the two big holders are wanting to buy out
Trading is way ahead of forecasts, results due in 13 days maybe someone has seen the figures?
All guesses but it’s a big rise on nothing
The only other thing I’ve looked at is it’s trading at six times earnings with £25m net cash do is very cheap for a luxury brand?

[csmwssk12hu] 17/11/2022 15:16

There’s only 25000 shares traded so that’s 12500 bought 12500 sold, around £30k worth so if there’s nothing it could drop as quick

[csmwssk12hu] 17/11/2022 15:14

He didn’t want to buy last year when it was cheaper

[clocktower] 17/11/2022 15:09

Sports Direct maybe?

[csmwssk12hu] 17/11/2022 14:47

If there’s not a bid could be back to 210 as quick as it’s rose it’s 56% owned by one holder and 37% another do no real free float

[csmwssk12hu] 17/11/2022 14:46

Who knows I’ve checked everywhere and nothing hardly any shares traded either it’s very low to no volume normally

[sbb1x] 17/11/2022 14:41

Why tge spike...

[gregpeck7] 04/9/2022 23:52

Where is clocktower?

[glavey] 01/9/2022 18:07

A matter of some gravity.

[gregpeck7] 28/7/2022 14:42

Shares keep dropping.