Business
COVID-19 update and expected date of FY20 results
COVID-19 update and expected date of FY20 results.
About this update from Mulberry Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 2528P\n Mulberry Group PLC\n 08 June 2020\n \n \n \n Mulberry Group plc\n (\"Mulberry\" or the \"Company\")\n \n COVID-19 update and expected date of publication of FY20 results\n \n \n Company update\n \n \n \n \n \n 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. \n \n \n \n \n \n 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.\n \n \n \n \n \n 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.\n \n \n \n \n \n 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.\n \n \n \n \n \n Thierry Andretta, Mulberry's Chief Executive Officer, said:\n \n \n \n \n \n \"We rea...