Mulberry upmarket leather handbags are fast becoming the fashionista's 'must have', matching even Louis Vuitton and Chanel. And its growing global appeal saw Mulberry's half-year operating profits jump 219 per cent to £5.6m, after excluding £1m of exceptionals costs incurred taking full control of its two New York stores.
Mulberry says it will beat full-year expectations after unveiling a like-for-like sales increase of 29 per cent in the half. US sales rose 102 per cent, while wholesale shipments rose 76 per cent on strong demand in Asia, particularly Korea, while even UK retail sales climbed 27 per cent, bucking the supposed slide in consumer spending. Importantly, after spiking from 55 per cent to 64 per cent, gross margins should hold firm, with the group's unlikely to discount stock during the vital Christmas run-in.
New stores in Hong Kong, the Middle East and a flagship Bond Street outlet should help maintain the already strong sales momentum, with underlying sales up 47 per cent in the 10 weeks between the financial year-end and 4 December.
Broker Altium Securities has raised its full year forecasts and is now looking for adjusted pre-tax profit of £15m and EPS of 18.1p in the year to September 2011 (from £6.1m and 6.9p last year).
MULBERRY GROUP (MUL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 910p | MARKET VALUE: | £536m | |
| TOUCH: | 905-920p | 12-MONTH HIGH: | 938p | 142p |
| DIVIDEND YIELD: | 0.2% | PE RATIO: | 100 | |
| NET ASSET VALUE: | 48p | NET CASH: | £12.3m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 32.3 | 1.54 | 1.80 | nil |
| 2010 | 44.7 | 4.71 | 5.70 | nil |
| % change | +38 | +207 | +217 | - |
