Retailer’s Net Cash Balances at £0.8m with Additional Borrowing Headroom

  • Mulberry’s revenues in line with expectations for FY23
  • Retail revenue improved in UK and China
  • Net cash balances expected at £0.8m on 1 April
  • Further headroom available under borrowing facilities
  • Gross margin maintained during FY23 through focus on full price sales
  • Investment in Asia Pacific region with duty-free store launch in Hainan, Greater China

Mulberry has announced that its financial year ended 1 April trading results were in line with expectations, with revenues slightly ahead of the previous year and profitability weighted towards the second half. The improvement in retail revenue was driven by strong performance in the UK and a better environment in China, supported by Mulberry’s direct-to-customer model. As a result, the company’s net cash balances on 1 April are expected to be around £0.8m with additional headroom available under its borrowing facilities. During FY23, the group maintained its gross margin through a strategic focus on full price sales and further investment in the Asia Pacific region with the launch of a duty-free store in Hainan, Greater China. Mulberry plans to announce audited FY23 results on 22 June 2023.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Mulberry’s financial performance, including revenue, profitability, net cash balances, and strategic focus on full price sales. It also includes a quote from the CEO, Thierry Andretta, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about Mulberry’s financial performance and strategic focus, with a brief comment from the CEO. It stays on topic and supports its claims with specific figures and plans for future investments.
Financial Relevance: Yes
Financial Markets Impacted: Mulberry’s stock price and luxury goods sector
Financial Rating Justification: The article discusses Mulberry’s financial performance, including revenues, profitability, net cash balances, and strategic investments. This information is relevant to the company’s financial situation and can impact its stock price as well as the luxury goods sector in general.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk