Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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https://www.hellomagazine.com/hfm/20221201158534/princess-kate-mulberry-bag-rent-now/?viewas=amp
Boost them sales Kate!
https://www.bbc.co.uk/news/world-asia-china-63805188
Great news
China lifting lockdown measures. Just in time for Christmas!
Looks ready to start moving up again. Buy while you can down here.
LVMH added 20 billion to market cap after hours... Prada and Hermes also flying.
Looks like US rates are gonna peak in Dec. Great news. Lower than anticipated. Markets are gonna be very strong in Dec.
Bit more detail from Shore
Pointing out that Mulberry trades at a 30% discount to peers, Shore Capital’s Eleonora Dani said the current valuation ‘does not reflect its leading ESG efforts or the great emphasis on the direct-to-consumer strategy, which could drive a premium rating. ‘However, we note the stock’s illiquidity so a discount might need to be factored in when looking at the business.’
Almost 2200p today
8.4 billion mkt cap...
Burberry stated strategy to become "More British"
Mulberry 140m...
Join the dots.
Agree Maximus..
The big plus points are Asia still growing, wholesale growing.
UK has dragged things back, without that it would have been a revenue beat, but look at what we are exposed to in the UK, day after day of relentless negative reporting. The world is ending is basically the message, overall though they ended up with revenue down 1%.
Lots of exceptionals in the previous year made comparisons hard.
Now is the busy season and the current trading says they are ahead, ill take that.
And the last thing we need at Christmas is them not having inventory, they seem to have thought the same...
Margins maintained at 71% - that is huge.
They eyes are drawn to the cash position, but as we have discussed, that cash is not gone, it has been converted to inventory largely and some growth. Also look at the marketing spend, its up a lot to build the brand. Thats a tap that can easily be turned on and off. Without that increase they are basically in profit.
So for me its not a slam dunk but as Mulberry themselves say, its solid. And this share is cheap. Very cheap.
Interesting to see there was still 6% growth in china in spite of Covid restrictions. once their Covid situation improves you’d assume a lot stronger growth in the future.
The ong family own 56% and frasers group own 37% (Mike Ashley) and Burberry have been rumoured to be interested. Strong players involved.
It’s such a strong brand I think it has huge potential for growth from these levels.
Mulberry Group (AIM:MUL) shares fell 15% to 240p on Wednesday as deteriorating consumer sentiment caused revenues to dip 1% in the first half of 2023, according to the British luxury fashion company’s interim results.
UK retail sales were the worst hit with a 1% decline to £34.1mln year on year, while China retail sales actually increased by 6% despite harsh Covid-19 restrictions.
Pre-tax losses came to -£2.8mln against pre-tax profits of £4.5mln in the first half of 2022, and while net cash fell sharply, the group retains £4.3mln in the bank.
Chief executive Thierry Andretta commented: “We have delivered a resilient performance across the group, supported by strong international demand and continued investment in the UK.
“Looking ahead, we are confident in our ability to execute our strategy and to continue to invest across the group for our future growth, in spite of the challenging economic and geopolitical backdrop.
“We are well placed for the festive trading period and will continue to drive the business forward to the benefit of all stakeholders.”
Equities analysts at Shore Capital noted an investment case “predicated upon Mulberry being well-positioned to deliver on the Asian-focused geographical expansion and potential product extension strategy” in combination with MUL shares trading at a 30% discount to its peer group.
AIM-quoted MUL shares are around 19% down year to date with a market capitalisation of £144mln.
1 MM left at 270 then its 290... Maybe people are actually reading the results now! The more you read them, the more you can see they are rock solid.
1% down Revenue
71% margin maintained
Forward guidance sales are ahead of last year
Frozen energy prices at 2021 levels
Large inventory in place to ensure no supply chain issues
Wholesale growing strongly
Sweden new market opened
Bought out Australia to run by Mulberry not Franchise
Forward margins guided at 71%
This is a success.
Could have been better , but what retailer is currently smashing it? Arguably Burberry but its tough out there...
Cash was down, but its not because of losses, its because of investments and inventory. Thats a huge difference.
Just think how awful recent news flow was.. Particularly march to june.. Its a miracle in many ways they have only taken a 1% revenue hit.
Ukraine fallout at its peak, inflation peaking etc. Yet they raised prices and maintained the margin. I expect Jan will be their only sale of the year.
Fixing energy in 2021 for 3 years is huge as well. All being well, they come out of that deal in 2024 and prices are falling back significantly. That's a huge bullet dodged.
This is by mkt cap a tiddler 140m odd I think, that is teeny tiny. If anything the chance of someone taking advantage and taking them over is probably greater than ever now.
Burberry on record saying they want to "go British" and emphasise their "Britishness" as the Washington post say, best way to do that.. Buy Mulberry.
Total over reaction today. I think . Let these results sink in. Look at the numbers and they are actually doing well. Very reassuring to know that current trading is ahead, and last year was a string year...
I suspect we will be back over 250p very soon and calm heads will realise this was a decent update - macro environment considered.
Presentation on the website - which goes into things like taking back control of the franchise to have better control of the brand.
High-end accessories retailer Mulberry is beginning to feel the effects of the cost of living crisis and recession in the UK, with sales and revenue slipping over the past six months.
The British fashion firm reported a one per cent revenue dip to £64.9m. While sales sank 10 per cent to £34.1m in the six months to the beginning of October.
https://www.cityam.com/mulberry-feels-the-chill-of-recession-but-eyes-christmas-boost/
Looks like you are right on that Terry, they are throwing this around. Only 1 MM at 250. I think they were looking for stop losses etc with that drop and didnt find any.
When the dust settles here is how I see things
Cash is down - clearly
Inventory is up - massively - thats an investment
2/3 almost of their revenue is seasonal / around this time of year. Current trading is ahead of last year, which was a great year
They have bought our Australia, again, thats an investment
They have established an operation in Sweden - another investment
Energy fixed for 3 years at 2021 levels - thats smart.
Margins maintained at 71% - and guided to stay there - thats huge
Negatives
And revenue for the period is 1% down - thats not a lot at all..
You look at many retailers performance, improvements are coming through recently. Luxury market is forecast to keep growing, especially leather bags, Mulberry is right on point and trend here...
When you drill in, things look actually pretty good. Its tough for everyone at the moment...
And personally I think Burberry are gonna come knocking...
And they will have to pay to get their hands on this.
Current trading is where they make most of their cash and profit. Which is ahead.
This increase was predominantly driven by increased inventories of GBP16.7m, to support our strategy to focus on a direct-to-customer model, to mitigate cost increases, and to prepare for the important festive trading season. We are managing stock levels in light of the ongoing macro-economic uncertainty and cost increases.
Drill into the numbers and you can see they spent a load increasing inventories ( 1 example ) bought out Australia, opened in Sweden. These are all one offs. Considering the back drop it’s rock solid but take your point could be a tipsy turvy day.
Driven by investment though.
Outlook looks decent.
Current Trading
-- An improved trend in retail revenue for the eight weeks to 26 November 2022 compared to the same period last year, however there remains ongoing uncertainty in the economic and geopolitical environment
No discounting strategy working well. Margin maintained at 71 percent. Very slight fall in revenue driven by UK Asia growing. Despite covid. Lots of investment for growth going in.
Signs are good
Peer group all doing well / very well
No discounting over black friday / cyber monday
Margins on last update were improving and strong
Mulberry bags now a very "hot" item - see Kate Middleton using them all the time, that will be driving sales.
Very low PE here now
Burberry reported to be interested in taking them over
CAGR leather bag market forcast something like 7% growth YOY in luxury space, thats in the current climate!
So I dont see the results being poor personally.
I need 350. to break even I bought in 30 April 2021 when it spiked to 386. plus, be good to see a rally tomorrow on the back of good set of results
GL
Looks like it could blow up the last 90 mins here.
Burberry shares on absolute fire.. Only a matter of time before this follows. Added a few more today.
1 MM at 270p then its 290p
Going to move very soon.