Mulberry Group Regulatory News (MUL)

5 Mar 2009 07:00



Mulberry Group plc

5 March 2009 

Mulberry Group plc ("Mulberry" or "The Group")

Trading update

Mulberry Group plc, the luxury British fashion brand specialising in the design, manufacture and sale of leather goods and accessories announces the following trading update.

At the time of announcing the interim results for the six months to 30 September 2008 the Group indicated that the financial performance for the year to 31 March 2009 was expected to fall short of market expectations due to the slowdown in consumer demand and, in particular, UK retail sales. 

However, during the Christmas week ended 27 December and throughout January the UK retail business achieved significantly stronger sales than expected with sales of like-for-like stores more than 30% ahead of those achieved during the prior year. 

Margins were maintained during this period as the Group did not go into sale until Boxing Day and controlled the level of markdown during the January sale.

Sales slowed during the bad weather at the beginning of February but have improved again during the last two weeks with like-for-like store sales running at similar levels to the good figures achieved last year. In particular, sales have been bolstered by the strong performance of the new Mitzy collection of handbags.

As a result of the stronger than expected trading performance in the UK, the Board believes that the results of the Group for the year ending 31 March 2009 will now be ahead of market expectations.

Despite the strong trading in the UK since Christmas, the global economic outlook remains very uncertain and European and International partners are adopting a cautious approach to placing orders for the Autumn 2009 season. The Board has not altered its expectations for the next year ended 31 March 2010.

Strategies have been developed to reduce inventories and maximise cash flow alongside a cautious approach to the fixed cost base leaving the Group prepared for a downturn in demand and tough trading conditions. The initial reaction to the new Spring 2009 collection has been encouraging and Mulberry is well positioned, with a strong brand and balance sheet with no borrowings.

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