Mulberry Recovery After The Price Cut Results Are Gratifying

In the first 10 weeks of the current fiscal year ending June 6th, Mulberry Group PLC recorded a 17% increase in sales, up 15% from the base.

In the past year, the group has been paying the wrong price strategy for former CEO Bruno Guillon.

After a number of earnings warning, in the 2015 fiscal year ended March 31st, the group's adjusted pre tax profit dropped 74% from a year ago, from 14 million 700 thousand in fiscal 2014 to 4 million 500 thousand pounds, slightly higher than the group's previous expectations and expectations of 4 million 300 thousand pounds.

Net profit fell from 86 billion 20 million pounds a year ago to -139.2 million, earnings per share declined from 14.3 pence to -2.3 pence, adjusted earnings per share were 2.1 pence, 19.8 pence a year ago.

Under the leadership of group chairman Godfrey Davis, Mulberry Group PLC has come back to the brand's inherent route. 66% of the 2015 spring and summer products have been accepted by the British core customers in the price range of 500-1000 pounds, which was only 45% a year ago.

After the price cut, the retail performance of the group in the second half of the fiscal year improved significantly, pushing the annual retail revenue to 1%, increasing to 109 million 900 thousand pounds, while the same store sales decreased by 2%.

According to the no fashion Chinese network data, the group's retail revenue and same store sales in the first half of fiscal year ended 9% and 13% respectively, while the two data in the second half of September 30, 2014 increased by 9% and 7% respectively.

By market,

Retail sales throughout the year (excluding digital sales) fell by 6.6% to 74 million 700 thousand a year, while same store sales fell 7%, but the same store sales grew 3% in the second half of the year.

international

(excluding digital sales) rose 27.4% to 17 million 200 thousand pounds compared to the same period, and same store sales increased by 2%.

Digital sales rose 15% to 18 million pounds, an increase of 2 percentage points to 12%.

Although retail sales have improved, it has been improved.

The decline of 28.8% (to 38 million 800 thousand pounds) was offset, so Mulberry Group PLC's overall revenue fell 9.1% year-on-year, from 163 million 500 thousand in the 2014 fiscal year to 148 million 700 thousand pounds, which is in line with market expectations.

In the earnings report, the Group expects wholesale business to stabilize in the current fiscal year, and so far the orders are in line with expectations.

In April this year, Mulberry Thierry PLC, the former chief executive of the Group PLC CEO, expressed satisfaction with the initial results of the new product strategy. After that, he would focus on lowering the price structure of footwear and clothing categories, but no major changes would be made in other areas.

In the 2015 fiscal year, the gross profit margin of Mulberry Group PLC was 60.5%, 280 points lower than 63.3% in one year, and the adjustment of product price and the low production margin were the main reasons.

The Group expects that this year's operating costs will rise due to new store investment, rent adjustment and new management team.

Group Chairman Godfrey Davis revealed that because of the sharp fluctuations in the euro exchange rate, the group made a fine adjustment of the euro price, but this has no real impact on gross profit in the whole year.

Godfrey Davis also pointed out that Mulberry handbags, such as Cara, Tessie and Alice, were welcomed by customers. The group made progress in product creativity.

The director of brand creative director has finally welcomed C Johnny line, a former accessory designer Johnny Coca7 8 months after his first two years in the air, but his first product will not be available until next June.

Mulberry Group PLC recommended a dividend of 5 pence per share, unchanged from the 2014 fiscal year, and said this reflects the group's confidence in the medium-term outlook.

At the time of the deadline, Mulberry Group PLC (MUL.L) reported 914.94 pence at noon, up 1.1%, which has risen 29.4% over the past 12 months.