Mulberry Group Plc · LSE:MUL
Mulberry — H1 2020/21 Earnings Presentation
22 slides from Mulberry's earnings presentation, November 2020
Slide 1: Interim Results for the 26 Weeks Ended 26 September 2020
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 MULBERRY GROUP PLC – INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020
Slide 2: Contents
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Contents Highlights 3 STR ATEGY OVERVIEW 14 Current Trading 4 Strategy — Our 4 Strategic Pillars 15 COVID-19 5 Strategic Pillar 1 — Omni-channel Distribution 16 Strategic Pillar 2 — International Development 16 FINANCIAL REVIEW 6 Strategic Pil
Slide 3: Highlights
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Highlights FINANCIAL HIGHLIGHTS OPER ATING HIGHLIGHTS — Group revenue down 29% to £48.9m (2019: £68.9m) primarily reflecting — Sales trajectory improving, down 39% in Q1, and down 18% in Q2. impact of COVID-19 and closure of majority of stores
Slide 4: Current Trading
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Current Trading CURRENT TR ADING FOR THE 8 WEEK PERIOD FROM 27 SEPTEMBER 2020 — Sales trends experienced in Q2 continued into October, with improving stores sales, a strong digital performance and continuing growth in Asia. — Trading in the 8
Slide 5: COVID-19 — Store Closures
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 COVID-19 — Store Closures STORE CLOSURES BY REGION (OWN STORES ONLY ) — Mulberry’s international stores started to close in response to the pandemic in mid-January 2020 and by the end of March 2020, we had closed 70% of our stores worldwide an
Slide 6: Financial Review
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Financial Review
Slide 7: Revenue
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Revenue £ MILLION 2020/21 2019/20 % CHANGE — Group revenue down 29% to £48.9m (2019: £68.9m) primarily reflecting impact of COVID-19 and closure of majority of DIGITAL 23.4 13.9 68% stores from start of period. STORES 19.5 43.2 -55% — Sales tr
Slide 8: International Revenue
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 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 sales decreased 4% to £14.9m (2019: 20
Slide 9: Digital Revenue
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Digital Revenue — The strength of our digital business helped to offset the £ MILLION 2020/21 2019/20 % CHANGE impact of the store closures at the beginning of the period and to achieve overall sales for the period ahead of our initial UK 18.0
Slide 10: Group Income Statement
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Group Income Statement — Adjusted loss before tax of £1.9m (2019: £10.1m) UNAUDITED RESTATED UNAUDITED AUDITED before adjusting items of £0.5m (2019: £nil) 26 WEEKS ENDED 26 WEEKS ENDED 52 WEEKS ENDED 26 SEPTEMBER 2020 28 SEPTEMBER 2019 28 MAR
Slide 11: Group Balance Sheet
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Group Balance Sheet — Inventory reduced by 13% to £33.6m reflecting UNAUDITED RESTATED UNAUDITED AUDITED 26 SEPTEMBER 2020 28 SEPTEMBER 2019 28 MARCH 2020 the benefit of our agile supply chain and actions £ MILLION £’000 £’000 £’000 taken to m
Slide 12: Group Cash Flow
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Group Cash Flow — The net increase in cash and cash equivalents UNAUDITED RESTATED UNAUDITED AUDITED 26 WEEKS ENDED 26 WEEKS ENDED 28 52 WEEKS ENDED 28 per the cash flow statement of £0.6m (2019: £ MILLION 26 SEPTEMBER 2020 SEPTEMBER 2019 MARC
Slide 13: Capital Expenditure
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Capital Expenditure £ MILLION — Capital expenditure during the period related to the opening and refurbishment of stores and further investment in digital IT systems. 14 — Increased capital expenditure projection, to £2m, recognising £2.0 £6.4
Slide 14: Strategy Overview
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Strategy Overview
Slide 15: Our 4 Strategic Pillars
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 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 16: Strategic Pillars 1 and 2: Omni-channel Distribution, International Development
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Strategic Pillar 1 Strategic Pillar 2 — Omni-channel Distribution — International Development STR ATEGY: STR ATEGY: We aim to create a luxury experience for our customers, regardless We are optimising our digital channels and global store netw
Slide 17: Strategic Pillars 3 and 4: Constant Innovation, Sustainable Lifecycle
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Strategic Pillar 3 Strategic Pillar 4 — Constant Innovation — Sustainable Lifecycle STR ATEGY: STR ATEGY: Innovate with new services, new materials and methods of creation Focused on developing Mulberry ‘families’ that are made-to- and product
Slide 18: Building Mulberry as a sustainable global luxury brand
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 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
Slide 19: Appendix
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Appendix
Slide 20: Store Detail
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Store Detail DEPARTMENT TOTAL CHANGES FROM TOTAL FREE STANDING SHOP-IN-SHOP 26 SEPT 2020 28 MARCH 2020 28 MARCH 2020 UK 19 30 49 -5 54 EUROPE 5 1 6 0 6 OWN STORES NORTH AMERICA 5 0 5 -2 7 ASIA PACIFIC 16 16 32 0 32 TOTAL OWN STORES 45 47 92 -7
Slide 21: Revenue by Product
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020 Revenue by Product INTERNATIONAL MIX (AS A PROPORTION OF GROUP REVENUE) 2021/20 2019/20 2018/19 17% 21% 25% 6% 7% 6% 77% 71% 69% BAGS APPAREL ACCESSORIES, SMALL LEATHER GOODS & GIFTS 21
Slide 22: Slide 22