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Youre right, you dont become exclusive just by being expensive, but price and quality are not linked always. Mulberry bags are great quality products, equal to that of Hermes and LV, yet cheaper, purely due to image. The plain fact is that Mulberry is now TOO accessible. You can get a bag for under £400, which isnt exclusive. at all. Theres just too many Mulberry bags out there. My wife has over half a dozen of them, but shes a big fan, long before they became big a couple of years ago, hence she invested here. I personally think that the base price for any of the icon range, ie Alexa, Bayswater, Del Ray or Lily, should be £1000, for the bog standard black/brown leather. Im also of the belief that they should make some which cost £5k+, in exotic leathers, such as the ostrich skin which is currently available. People buy brands. You need the quality to be there yes, but the rest is plain image really. If Mulberry want to mix it with Hermes and LV, they need to stop having concessions in every HOF, Selfridges, HNs, Debenhams, etc. Stop making them so accessible, and swap the 3 people who earn 20k a year and save up for a bag, with 1 person who doesnt bat an eyelid and spending £1000 on a bag, and insists on the matching purse for another £300. Theres enough people who fit into the category. Also, Mulberry need to start making shoes to match their bags! I thought that a woman was their head designer, and shes not picked up on this?! Anyway, the head designer, Emma Hill is leaving because shes not happy that Mulberry are overcharging for their bags, and making them less accessible?! I say that Mr Guillion knows best, and that this is the correct direction for the company. He did it with Hermes. Mulberry needs to tap into the market for English products. I dont see us ever cracking Europe, as the French and Italian dont like our styles, but China, yes. The Chinese love anything English. Sadly they also like LOUD fashion, where you can spot the label a mile off. They love LV. I dont get it, since they all look the same. I guess that an LV looks like an LV though, and thats the point. Its also why Mulberry now make a lot of ostentatious bags. For the Chinese market. The main reason my wife invested here, is because the only thing to stop the annoyance of seeing every woman on the street flashing their typical black, tan, or oak Bayswater (the one you get when you only have one Mulberry) could only be combated by buying a stake in the company. The shareholder discount card is a much better trophy than having the same bag as everybody else, eh? Any girl will tell you that. You own a Mulberry bag? I own a multi thousand quid stake in the company, and get 20% off all my bags. Hmmmm. I guess its like us blokes having a bigger tele or bigger alloys on our car?
But I thought the whole point of the UK factory was to start bringing the production back to the UK. I'm saying that 100%, I just thought that was the case. I haven't looked at the bag prices too closely so can't dispute what you say, but I bought the other half a very decent continental purse for £250 ish on their website. I thought that was perfectly good given the quality of it. In fact, I'd almost call it value for money it's such a well thought out design. Where it was made doesn't bother me too much if I'm really honest, as long as the quality is there.
Yes I believe they are opening a new factory in Somerset but majority of their bags are not made in the UK anymore. I'm not trying to talk the SP down, I bought in at 1040 and would love to see the sp recover so I could sell. I just don't like how they're treating their loyal customers; people like my sis-in-law, she would save up to buy a MUL once a year but now she can't afford to b/c prices has gone up so much.
I thought they had actually just opened a new factory in Somerset.
i don't know what planet those people in charge of MUL are from, you can't make a brand more exclusive by simply putting up the prices. If that wasn't bad enough they start producing bags in China. This company is driven by greed and has no business ethics.
Get that shareholder discount card used mate! Its the only way to offset the lacking exclusivity of Mulberry bags are girls continue to snap them up like hot cakes. As you say too, prices are growing. £900 for a basic Del Rey. £950 at Xmas no doubt. Nuts. People will keep buying them regardless, and personally, Id like to see less on the street, with each one costing more. Same income, more exclusive. There's too many £300/£500 Mulberries out there for me. Its time to gradually crank up the exclusivity if you ask me. That's got to be the long term outlook for the brand now that they are a household name in fashion. Think Hermes and LV, not Radley and Michael Kors.
Perhaps if we combine forces....
That purse I bought the old girl must have got things moving....
Agree with what you say. I'm all over this at the moment - don't doubt the potential in the slightest.
Not ramping by the way, just my honest thoughts - if you can believe that.
I can't think of any reason beyond just change in sentiment following and overreaction to the results. I'm behind this stock fully at the mo and really expect to see 1300-1500 in the near future.
Nice to see plus 1,000 again, hope the next few months will see prices rising back around 1,300. Anybody have any news/reason for the 7.9% rise today?
It has - just too a while. This'll be 1300+ again soon, I'm sure(ish).
Why is that the 'Kate Effect' did nothing to the share price [see Daily Telegraph today] after she stepped out in a Mulberry suit last week? Whenever she wears other manufacturers products the item sells out in hours, with a resultant positive uplift in the shares. Not in this case for reasons I cannot fathom.
Rather frustrating at the moment this. I'm convinced we'll be 1200+ in due course - hopefully next month or so, but could do without hte wait.
They look like sales to me?
Still looks an expensive stock to me. Trading above 20x next years forecast. Do not think organic revenue growth justifies current price. Great company, brand and product. Been following company since late 80's. They have done a great job building brand.
We went out to celebrate a birthday on Friday and returned home to find the carnage that had taken place at cup - didn't think I needed to set a stop loss there as I bought in after their last results which looked superb. Still it's a lesson for the future and it is recovering a lot of lost ground today. I saw you had been chasing kaz down. I haven't had the funds to do anything with it other than sit and watch in horror. I'm just going to take the divi there and keep it in the bottom drawer for a while. Yeah I think during tough times, the bargain basement retailers do well and the top end ones maybe lose a small amout of business but the middle ones really get squeezed. I'll look into the shareholder discount thing here. ATB
Yes it's been better that's for sure. Yep - well remembered. I got here a splendid Mulberry continental purse and tickets to Charlie and the Choc factory the musical. Tbh for items like that, I think Mulberry have a great handle on the marketplace. Their stuff reeks of quality and if anything, many people might think the stuff is more expensive than it is. Putting their high end stuff to one side, I think you get good value frankly. I mainly spread, so no shareholder benefits for me. I did really well out of this lot after the last drop and was sitting on a decent rise for months but got nobbled last week with that monster drop. Sure it'll be bac up again in a month or so.
Sid I guess times are still difficult. Did read on another bb that your wife has a big birthday coming up soon so you could help by buying her a posh handbag - I gather there is some shareholder incentive or discount scheme. I bought myself a nice Radley handbag and purse at Christmas time. Nice dog logo on their prodcts. Free christmas tree bauble on a £100 I think spend. Saw a local business owner wearing a burberry coat which I thought would have suited me so much better so that's next on my list. ATB
my daughter works in Mayfair in luxury end of shoes and March sales collapsed...assume that this is a lack of tourists and thats not surprising given the wet or wintry weather?
2 or 3 years ago you can buy a Mulberry handbag for around £600 and Mulberry was a brand that many women aspire to in the UK. Women that don't want to buy high street but can't afford designer will buy a Mulberry and they had a very successful niche market. Fast forward three years and you can't buy a decent Mulberry for less than £900 and most are made in China. I'm not surprise they are getting another profit warning, since 60% of their sales are generated from the UK... by increasing their prices by as much as 50% in the past three years, they have forced out many of their UK consumers. I think they need to do a reality check because women that buys LV, Chanel and Hermes are unlikely to ever buy a Mulberry.
I'm afraid that I'm becoming increasingly frustrated by the ever soaring expectation of analysts and their considerable influence, both positive and negative on market prices. Their focus appears to be on an ever increasing expectation of profit growth. Logic determines that there this is quite simply not possible - there will always be economic peaks and troughs and companies with good underlying fundamentals will steer a passage through stormy waters and survive and prosper - Mulberry being just one of many. Forget about analysts - I sometimes wonder who really benefits from there opinions, forcecasts etc - the MMs? - forget about analysts and back stocks with good fundamentals rather than those chasng never ending spiral of profits ending in disaster - look at the British Banks for an example. This is a good company with sound fundamentals, I'm sticking with it and I may well add to my holding.
Hey Chandley, really eager to hear your opinion about this. Looks like your post of 7 March was some way off. But I guess the 'cooling off' you mention on 4 March has run its course - in fact it's positively freezing as we hit 955p earlier. What is your prognosis, mate? Hope all well.
That's a hell of a drop on a profit warning. Guess I should've sold while ahead eh?