Latest News

Mulberry cuts losses despite coronavirus pandemic hit

0

Mulberry Group PLC (LON:MUL) has posted reduced half-year losses despite sales being depressed by the coronavirus (COVID-19) pandemic.

The luxury fashion group, famous for its handbags, said the sales trends it experienced in the quarter to end September 2020 have continued into October but noted that the November lockdowns have hit trading.

Sales in the eight weeks to November dropped by 19% compared to last year, the luxury bag designer said in its interim results, though the losses from store closures were partly offset by its omni-channel business and growth in Asian markets.

READ: Frasers Group ups stake in Mulberry Group to over a third

Mulberry’s retail revenue in the Asia Pacific region and digital revenue have grown in double digits, while its net cash balances as of November 21, 2020, were £5.8mln.

In the 26 weeks to September 26, 2020, revenue tumbled 29% to £48mln due to COVID-19 and the closure of stores during worldwide lockdowns.

The AIM-listed firm cut loss before tax by 77% to £2mln thanks to strong cash control and reduction of the inventory by 13% to £33mln.

Mulberry shares jumped 10% to 278.6p early on Thursday, underpinned by bid hopes.

On November 19, Frasers Group PLC (LON:FRAS) revealed that it had raised its stake in the bag designer to 36.82% after snapping up 22mln shares for 150p each,

The House of Fraser and sports direct owner firm originally bought a 12.5% stake in Mulberry in February and increased that to 29.61% earlier this month.

Because Asian firm Challice owns 56% of Mulberry’s issued share capital, Mike Ashley’s firm does not have to make a mandatory cash offer to other shareholders as it would otherwise be the case as per London Stock Exchange rules.

However, the FTSE 250 firm has until December 17 to announce whether it would like to buy the whole company by making a cash offer to all shareholders or not.

TClarke shares boosted as it highlights resilient performance

Previous article

Ironveld slumps after massive share issue

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News