Mulberry report on Thursday

Mulberry will announce its full-year figures next Thursday; analysts are estimating an operating profit of £17 million and revenue of £163 million.

A logo sits on a sign outside a Mulberry Group
Source: Bloomberg

Mulberry’s share price has taken a battering in the past few months; in December the company announced a drop in first-half profit, and two profit warnings have been made so far in 2014. The stock is trading at 732p, down 27% since its December announcement.

The high-end fashion house had a poor Christmas period, and its strategy since has been to reduce its prices in order to boost sales. Unfortunately this has tainted the exclusive image that the company has been working on for years.

Though the fashion house has suffered from declining UK sales, accounting for more than half of all its revenue, its international business is offsetting the domestic softness and the firm is continuing its expansion into the US and China.

The share price has been has been stuck in the 680-730 range for the past two months. Expectations to the downside have already managed so I doubt the stock will drop below 640. If the figures are good the shares could target 855.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts