Mulberry And Onward Open A Joint Venture To Replace The Original Distribution Agreement.

According to the world clothing and shoe net, following the formal establishment of the Greater China joint venture in April this year, the British high-end

The brand Mulberry Group PLC (MUL.L), J. Mai Rui announced the joint venture business in Japan.

Mulberry Group PLC Mai Rui decided to upgrade with Japan

The partnership between apparel retailer retailer Onward Holdings Co. Ltd. (8016.T), nvad group, and the Onward Global Fashion Co. Ltd. of the latter set up a half joint venture company, Co. Mulberry, to replace the original distribution agreement.

Mulberry Japan Co., headquartered in Tokyo, will start operation from the end of the year and manage Mulberry.

In Japan's retail, e-commerce and wholesale distribution, Mulberry Group PLC Mai Rui will invest 2 million 800 thousand pounds.

Thierry Andretta, chief executive of Mulberry Group PLC, said in a notice that Mulberry Mulberry has seen significant growth opportunities in Japan, and that the new partnership will benefit from Onward Global Fashion Co. Ltd.'s deep luxury experience and solid infrastructure.

The group has just opened an independent store in Ginza Six, a new shopping landmark in Ginza, Tokyo, and has a special counter in Tokyo and Osaka. It also owns wholesale business and operates a brand website.

In December 2016, Mulberry Group PLC Mai Rui and its largest shareholder, Challice Ltd., began to build Mulberry (Asia) Ltd. to operate the whole greater China business in mainland China, Hongkong and Taiwan. Mulberry Group PLC Mai Rui invested 2 million pounds to control 60% of the new company's capital stock and the rest was held by the company.

In the first two years of its establishment, the new company invested about 3 million pounds for regional promotion, and opened 4 stores in Greater China, opened up wholesale and multi-channel networks, and established a Chinese website. It is estimated that profits will only begin in third years.

Challice Ltd. is the holding company of Singapore's business giant Ong Beng Seng Wang Mingxing and its business woman's wife Christina Ong. The two people hold Mulberry Group PLC, 56.2% of the shares of the company, and the fashion retail group, founded by Christina, is 21.

Mulberry's new store, located in Shanghai and Hongkong, has been opened in 4 and May with the establishment of a joint venture. Thierry Andretta Andretta pointed out that "International (market) is still the focus of development" in the June annual performance analysis conference teleconference conference. At present, the British market still has 62.5% of the group's revenue, and the Asia Pacific region's sales contribution ratio is much lower than that of the luxury goods industry.

In the past two years, the Mulberry Group PLC Mai Bao Rui, who has returned to the "affordable luxury" location, has resumed the wrong strategy and a series of earnings warnings from the previous CEO Bruno Guillon.

Data show that in the 2017 fiscal year ended March 31st, group revenues totaled 168 million 100 thousand pounds, up 7.9% from 2016 pounds in fiscal year 155 million 900 thousand, of which 19% of sales growth was achieved thanks to online sales of local websites in China and South Korea, and business increased from 14% in the previous year to 15%.

The same store sales in UK and international retail businesses increased by 5% and 7% respectively.

The pre tax profit was 7 million 533 thousand pounds, an increase of 21.2% over the previous year's 6 million 217 thousand, which successfully reversed the 500 thousand pound loss recorded in the first half of the fiscal year because of the depreciation of the pound.

Net profit increased by 85.8% to 4 million 990 thousand pounds, up from 2 million 685 thousand a year ago.

However, in the first ten weeks of the 2018 fiscal year ending June 3rd, retail sales grew by only 1%, including 3% in international retail sales, while the growth rate in the UK market slowed to 2%.

CEO Thierry Andretta pointed out that although the flagship store sales in New York and other top cities increased, fewer sub stores and Oteri J were weaker.

At the same time, despite the increase in tourist consumption in Britain due to the favorable exchange rate, London's outlets increased double-digit growth, but local demand weakened, resulting in a 1% drop in the retail sales in the UK.

He revealed that the British election and the terrorist attacks in Manchester and London in the past month have had an impact on sales. The main reason is that since the spring and summer series was launched ten weeks ago, no new products have been launched, and this period has been a low season.

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