Luxury handbag brand Mulberry (MUL) is pursuing a strategy of international expansion and direct-to-customer sales as it looks to reduce its exposure to the troubled UK retail market. But the group’s first-half results earlier this month show that, even as it makes progress, it faces challenges ahead of the all-important festive trading period.
IC TIP:
Sell
at
272p
Tip style
Sell
Risk rating
High
Timescale
Medium Term
Bull points
Direct-to-consumer sales growing
New products selling well
Bear points
UK and Hong Kong operations under pressure
Falling gross margin
Still heavily reliant on UK
Illiquid shares