Posh handbag maker Mulberry once again delivered spectacular profit increases, thanks to huge increases in sales to customers around the world.
International revenues more than doubled to £29.4m, helped by new directly operated store and concession openings in New York and Amsterdam, as well as five new partner-operated stores in Asia Pacific. The wholesale business - which sells to third-party retailers and partners - also benefited from burgeoning global demand, with sales in Asia Pacific up 149 per cent over the year. However, the company admitted that the 93 per cent increase in overall wholesale shipments to £31.3m was boosted by £8m as a result of shipments being brought forward by a month to satisfy the requirements of international customers.
In fact, forward orders for its Autumn/Winter 2011 ranges grew by a more pedestrian 47 per cent, and retail sales in the first 10 weeks of the second half are up a slower 18 per cent. Although some of that reflects strong comparable sales a year earlier, management admitted that it was mindful of the impact of economic challenges on consumer spending habits.
House broker Altium Securities expects full-year pre-tax profit of £30.1m and EPS of 37p (2011: £23.3m/29.1p).
| MULBERRY GROUP (MUL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,530p | MARKET VALUE: | £905m | |
| TOUCH: | 1,509-1,530p | 12-MONTH HIGH: | 1,940p | LOW: 811p |
| DIVIDEND YIELD: | 0.3% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 81p | NET CASH: | £16.7m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 44.7 | 4.71 | 5.70 | nil |
| 2011 | 72.3 | 15.6 | 19.6 | nil |
| % change | +62 | +231 | +244 | - |
