Mulberry Group Plc · LSE:MUL
Mulberry — FY2020 Earnings Presentation
25 slides from Mulberry's earnings presentation, September 2020
Slide 1: Preliminary Results for the 52 Weeks Ended 28 March 2020
MULBERRY GROUP PLC — PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020
Slide 2: Contents
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Contents Highlights 3 STR ATEGY OVERVIEW 17 Current Trading 4 Strategy — Our 4 Strategic Pillars 18 Our Progress to Date 2018-2020 6 Strategic Pillar 1 — Omni-channel Distribution 19 COVID-19 7 Strategic Pillar 2 — International Development 21
Slide 3: Highlights
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Highlights FINANCIAL HIGHLIGHTS OPER ATING HIGHLIGHTS AND RESPONSE TO COVID -19 — Group revenue down 10% to £149.3m (2019: £166.3m), primarily — Direct-to-customer sales represented 91% of Group revenue (2019: 88%) reflecting a challenging UK
Slide 4: Current Trading
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Current Trading QUARTER 1 QUARTER 2 PERIOD TO DATE £ MILLION SALES % CHANGE SALES % CHANGE SALES % CHANGE DIGITAL 14.6 76% 8.9 59% 23.5 69% STORES 5.5 -74% 13.8 -38% 19.3 -55% RETAIL (OMNI-CHANNEL) 20.1 -31% 22.7 -18% 42.8 -25% WHOLESALE AND F
Slide 5: Current Trading
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Current Trading CURRENT TR ADING FOR THE 26 WEEK PERIOD FROM 29 MARCH 2020 — Group revenue down 29% for the 26 week period from 29 March 2020, compared to the same period last year, with an improving trend since stores have re-opened (Q1 -39%,
Slide 6: Our Progress to Date 2018-2020
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Our Progress to Date 2018-2020 2018 MARCH MAY AUGUST SEPTEMBER Launch of Mulberry in Launch of Mulberry Japan. Launch of Mulberry Korea. Launch of new store Hong Kong, China and Taiwan. concept with British designer Faye Toogood. 2019 FEBRUARY
Slide 7: COVID-19
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 COVID-19 We reacted swiftly to the impact of COVID-19 and have a well-developed plan to manage capital, reduce costs and maintain a robust liquidity position. Mulberry’s omni-channel approach, market leading digital platforms and international
Slide 8: COVID-19 — Store Closures
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 COVID-19 — Store Closures STORE CLOSURES BY REGION (OWN STORES ONLY ) — The immediate effect of COVID-19 was the closure of the majority of our shops and our UK factories by the end of March 2020, with the exception of PPE. 80 6% 7% 70% 75% 61
Slide 9: Financial Review
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Slide 10: Revenue
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Revenue £ MILLION 2019/20 2018/19 % CHANGE — Group revenue down 10% to £149.3m (2019: £166.3m), primarily reflecting a challenging UK market and the impact DIGITAL 36.3 36.9 -2% of COVID-19 towards the end of the financial period. STORES 89.1
Slide 11: International Revenue
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 International Revenue INTERNATIONAL MIX (AS A PROPORTION OF GROUP REVENUE) — In line with strategy, international revenue continues to grow as a proportion of overall Group revenue. — International retail revenue +4% to £32.4m (2019: £31.3m) 2
Slide 12: Digital Revenue
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Digital Revenue — Digital sales now represent 24% of Group revenue (2019: 22%). £ MILLION 2019/20 2018/19 % CHANGE — This growth was partly due to building consumer confidence in online shopping for luxury goods, but also due to further UK 27.
Slide 13: Group Income Statement
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Group Income Statement 52 WEEKS ENDED 28 MARCH 2020 53 WEEKS ENDED 30 MARCH 2019 ADJUSTING ADJUSTING £ MILLION UNDERLYING REPORTED UNDERLYING REPORTED ITEMS ITEMS REVENUE 149.3 149.3 166.3 166.3 GROSS PROFIT 91.1 91.1 102.3 102.3 IMPAIRMENT CH
Slide 14: Group Balance Sheet
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Group Balance Sheet — During the period the Group adopted IFRS 16 ‘Leases’ £ MILLION 28 MARCH 2020 30 MARCH 2019 for the first time. — At 28 March 2020 right of use assets of £45.9m and lease NON-CURRENT ASSETS 33.3 41.6 liabilities of £92.1m
Slide 15: Group Cash Flow
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Group Cash Flow 52 WEEKS ENDED 53 WEEKS ENDED — The net decrease in cash and cash equivalents £ MILLION of -£4.6m reflects an increased operating loss, 28 MARCH 2020 30 MARCH 2019 offset by lower working capital and capital OPERATING LOSS FOR
Slide 16: Capital Expenditure
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Capital Expenditure £ MILLION — Capital expenditure during the period related to the opening and refurbishment of stores, further investment in digital IT systems and the Group’s factories. 14 £1.8 £6.4 £11.9 £5.4 12 0. 3 0. 5 10 2.2 8 6 0. 5
Slide 17: Strategy Overview
Strategy Overview
Slide 18: Strategy — Our 4 Strategic Pillars
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Strategy — Our 4 Strategic Pillars OUR AIM IS TO BUILD MULBERRY AS A SUSTAINABLE GLOBAL LUXURY BR AND THROUGH FOUR STR ATEGIC PILL ARS N INTE U TIO RN AT IB IO TR N IS A D L EL D N EV AN EL ICH OP OMN ME NT E CO YL NS ST TA FE N LI N T L E N
Slide 19: Strategic Pillar 1 — Omni-channel Distribution
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Strategic Pillar 1 — Omni-channel Distribution STR ATEGY: Through our omni-channel distribution model, we aim to enhance our customers’ experience and drive engagement. This includes developing our store network through selective store opening
Slide 20: Store Detail
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Store Detail DEPARTMENT TOTAL CHANGES FROM TOTAL — Developing store network through selective FREE STANDING SHOP-IN-SHOP 28 MARCH 2020 30 MARCH 2019 30 MARCH 2019 store openings and closures. — Continued roll out of the new Mulberry store UK 2
Slide 21: Strategic Pillar 2 — International Development
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Strategic Pillar 2 — International Development STR ATEGY: FREE STANDING DEPARTMENT TOTAL CHANGES FROM TOTAL STORES SHOP-IN-SHOP 28 MARCH 2020 30 MARCH 2019 30 MARCH 2019 Extending our digital channels and global store network, with a particula
Slide 22: Strategic Pillar 3 — Constant Innovation
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Strategic Pillar 3 — Constant Innovation STR ATEGY: REVENUE BY PRODUC T Innovate with new services, new materials and methods of creation and production to adapt to changing customer tastes and meet 2019/20 2018/19 demand. At the same time, we
Slide 23: Strategic Pillar 4 — Sustainable Lifecycle
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Strategic Pillar 4 — Sustainable Lifecycle STR ATEGY: Focused on developing Mulberry ‘families’ that are made-to- last, while delivering best-in-class customer service, including lifetime repair and aftercare. We are building on Mulberry’s cla
Slide 24: Our aim is to build Mulberry as a sustainable global luxury brand
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020 Our aim is to build Mulberry as a sustainable global luxury brand through four strategic pillars. — Omni-channel distribution — International development — Constant innovation — Sustainable lifecycle Trading since the start of the current fina
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