Mulberry Share Discussion Threads

[gregpeck7] 30/11/2022 13:50

Agree. But seeing as both parties are incredibly wealthy I think that is highly unlikely. I think at least 800p per share would be needed to get this off them. But yes point valid. They could do something like that.

[essentialinvestor] 30/11/2022 13:43

Greg, just keep in mind the majority owners could table a nil premium offer,
(to the best of my knowledge).

I am not suggesting this will happen, however it is a possibility.


The majority owners in MAB did this a while back and the bid failed as they
did not hold enough of the shares to get the offer through, when other
holders objected.


The two main holders in MUL have around 90% of the share capital between them?.

[gregpeck7] 30/11/2022 11:30

1 MM left at 270 then its 290... Maybe people are actually reading the results now! The more you read them, the more you can see they are rock solid.

1% down Revenue
71% margin maintained
Forward guidance sales are ahead of last year
Frozen energy prices at 2021 levels
Large inventory in place to ensure no supply chain issues
Wholesale growing strongly
Sweden new market opened
Bought out Australia to run by Mulberry not Franchise
Forward margins guided at 71%

This is a success.

Could have been better , but what retailer is currently smashing it? Arguably Burberry but its tough out there...

Cash was down, but its not because of losses, its because of investments and inventory. Thats a huge difference.




Just think how awful recent news flow was.. Particularly march to june.. Its a miracle in many ways they have only taken a 1% revenue hit.

Ukraine fallout at its peak, inflation peaking etc. Yet they raised prices and maintained the margin. I expect Jan will be their only sale of the year.

Fixing energy in 2021 for 3 years is huge as well. All being well, they come out of that deal in 2024 and prices are falling back significantly. That's a huge bullet dodged.

This is by mkt cap a tiddler 140m odd I think, that is teeny tiny. If anything the chance of someone taking advantage and taking them over is probably greater than ever now.

Burberry on record saying they want to "go British" and emphasise their "Britishness" as the Washington post say, best way to do that.. Buy Mulberry.




Now ask yourself, were these results actually bad at all? I think they were actually pretty good!

The more you read them, the more you can see this is a well run company doing well.

[gregpeck7] 30/11/2022 11:15

Crazy thing is I still don't really get the whole bad results narrative..

[csmwssk12hu] 30/11/2022 11:10

I’m looking at this and thinking this is going to be well over £3 by the end of the day

[disruptor1664] 30/11/2022 08:39

The old kiss of death by Greg once again.

[gregpeck7] 30/11/2022 08:33

That's been the trend here ever since lock downs ended. Read previous sets of results. Online is still well ahead but stores still dominate.

[clocktower] 30/11/2022 08:30

Please yourself but if they provide an update after Christmas your view might change.

Online sales dropping as people return to the shops, is not a good thing for Mulberry as costs increase from retail locations.

[gregpeck7] 30/11/2022 08:26

2000 buys and it rockets. This is being massively played ... only 1 seller at 250 as well. I think when peeps sit down and look at these numbers they will see they are pretty impressive. Considering 1h 2022 was probably one of the worst periods on global history! Also energy costs fixed for 3 years and prices for 2021. Not bad!

[gregpeck7] 30/11/2022 08:24

Clocktower. You clearly have as ever an agenda. When you add in 17m for stock, setting up Sweden. Buying out Australia. All of which are assets you can see where it went. It's not gone out the door in a loss it's a strategic investment. Current trading. And now is when they make the money. Is ahead of last year on last 8 weeks. How is that not good?!

[gregpeck7] 30/11/2022 08:23

Last 8 weeks trading up yoy and therefore I doubt it.. you do realise they were also more challenging comparable. Very volatile this one but I think this is a huge over reaction and a massive buying op. Revenue was 1 percent down with a 71 percent margin. That's hardly a car crash. The next 100m circa is being generated right now.

[clocktower] 30/11/2022 08:22

This is what you need to concentrate upon:

"We ended the period with net cash of £6.5m (2021: £30.3m) and deferred liabilities of nil (2021: £5.0m) and remain in a strong financial position with which to continue to progress our strategic goals."

That is a mighty drop in available cash.

[clocktower] 30/11/2022 08:18

Far from overdone, you have just had the results to 01.10.2022 - Think after Christmas there are going to be sales and with stocks so high, likely slashing the prices in the stores to shift old stock.

£1.50 target.

DYOR

[clocktower] 30/11/2022 08:15

No the main shareholder will not allow that, I thought at one time they might but while the brand is valuable it is in decline and were it not for oversea sales it might be doomed imo.

The likes of Burberry are a whole different package.

[csmwssk12hu] 30/11/2022 08:13

That’s overdone now that time for a toe dip

[aishah] 30/11/2022 08:12

Disappointing results. Clearly the festive period is key now.

[oilbuy] 30/11/2022 08:12

I think you should buy PXEN with the few quid you have left.

[gregpeck7] 30/11/2022 08:07

Agree on takeover. Someone is going to snap this up. Burberry surging higher again.

[clocktower] 30/11/2022 08:05

Increasing stock is not something one should consider positiv4e in a market that is going to enter into a likely recession after Christmas. Look how UK sales have fallen. already.

Going from profit to loss cannot be considered a success, so get real and smell the coffee.

[gregpeck7] 30/11/2022 08:02

Now is when the money is made and revenue last 8 weeks is up YOY. Great buying op.

[gregpeck7] 30/11/2022 08:01

This increase was predominantly driven by increased inventories of GBP16.7m, to support our strategy to focus on a direct-to-customer model, to mitigate cost increases, and to prepare for the important festive trading season. We are managing stock levels in light of the ongoing macro-economic uncertainty and cost increases.Exactly what I've just said on lse mate and trading for current period is ahead. They have invested the cash not lost it.

[csmwssk12hu] 30/11/2022 07:46

The results were good if you dig deep, near £17m increase in stock as they increase dtc opening more stores with Irish due to open before Christmas and despite covid restrictions in China, the U.K. sales drop is not surprising as the whole market has dropped, electrical market is down 18% furniture down 33% so 10% down on last years 32% rise is resilient to say the least, profit is always weighted to the second half, amazingly they are one of a very limited number of companies that have three year fixed energy bills which they fixed in October 21 so are unaffected directly by the increased energy costs, there’s a bid coming here off one of the two biggest holders or Burberry imho dyor

[gregpeck7] 30/11/2022 07:30

Current Trading-- An improved trend in retail revenue for the eight weeks to 26 November 2022 compared to the same period last year, however there remains ongoing uncertainty in the economic and geopolitical environment

[gregpeck7] 30/11/2022 07:19

Solid results. Not spectacular. Big cost increases as they push the brand. Margin maintained at 71 percent which is pretty incredible. Multiple price increases during the period. Asia strong despite all the covid 19 restrictions.

[my retirement fund] 29/11/2022 23:25

Goodwick greg