Last checked at 8 Jun 2020 09:15
Mulberry Group plc
("Mulberry" or the "Company")
COVID-19 update and expected date of publication of FY20 results
Company update
Since our last update on 24 March 2020, the majority of our stores have remained closed. We have, however, been able to re-open stores in China and South Korea and, more recently, some stores in Europe and Canada. We continue to trade through our digital channels, which have operated in all markets without interruption. The digital sales performance has been good but cannot fully offset the decrease in demand experienced from store closures.
In line with UK Government advice, we plan to commence a phased re-opening of some of our UK stores on 15 June 2020. The health and safety of our people and customers remains our main priority and consequently detailed additional safety standards and procedures have been put in place to allow our stores to operate safely.
The Company reacted swiftly to the impact of COVID-19 and we continue to proactively manage capital and reduce costs. We have also taken all necessary steps to manage our inventory levels in line with anticipated demand. We are maintaining a positive dialogue with the Company's lenders to ensure we maintain a robust liquidity position. At the date of this announcement, we have net cash on hand and our borrowing facilities remain undrawn.
In spite of this and given the uncertainty as to the impact and duration of COVID-19 on the Company and the wider economy, and the consequential effect on demand, we expect the recovery in our overall sales levels over the medium term to be gradual. Even once stores reopen, social distancing measures, reduced tourist and footfall levels will continue to impact our revenue. As a result of this, we must manage our operations and cost base accordingly to ensure the Company is the correct size and structure to reflect market conditions. The Company is therefore launching a consultation process on proposals to reduce employee numbers by approximately 25% across the global business.
Thierry Andretta, Mulberry's Chief Executive Officer, said:
"We reacted swiftly to manage the impact of COVID-19 and continue to execute a well-developed plan to manage capital, reduce costs and maintain a robust liquidity position.
In spite of the good performance of our sector leading digital and omni-channel platform, and our global network of digital concessions, the shutting of all our physical stores has had, and will continue to have, a marked effect on our business. Launching a consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions, protect the maximum number of jobs possible and safeguard the future of the business. We remain confident in the strength of the Mulberry brand and our strategy over the long-term."
FY20 results
The Company's audited results for FY20 are currently expected to be announced during August 2020. A Notice of Results announcement will be issued in due course to confirm the date.
For further information please contact:
Mulberry
Charles Anderson Tel: +44 (0) 20 7605 6793
Headland (Public Relations)
Lucy Legh / Jane Glover Tel: +44 (0) 20 3805 4822
mulberry@headlandconsultancy.com
GCA Altium Limited (NOMAD)
Tim Richardson Tel: +44 (0) 20 7484 4040
This announcement is released by Mulberry and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. This announcement is being made on behalf of the Company by Charles Anderson, Group Finance Director of Mulberry.