Mulberry Group Plc · LSE:MUL
Mulberry — H1 2010/11 Earnings Presentation
21 slides from Mulberry's earnings presentation, September 2010
Slide 1: Investor presentation: Interim results for six months ended 30 September 2010
Investor presentation MAIN TITLE SUBTITLE Interim results HERE for the six months ended 30 September 2010
Slide 2: 1
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Slide 3: Highlights of the six months ended 30 September 2010
HIGHLIGHTS OF THE SIX MONTHS ENDED 30 SEPTEMBER 2010 –Significant sales and profit growth –Total revenues increased by 38% to £44.7 million –Retail sales up 30%, like-for-like up 29% –Autumn/Winter 2010 orders up 100% compared to prior year. Wholesale shipments up 76% –Gross margin up to 63.9% for t
Slide 4: Summary of results: Income statement
SUMMARY OF RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010 INCOME STATEMENT £000’s 2010/11 2009/10 Variance Revenue 44,668 32,316 +38% Gross profit 28,540 17,788 +60% Gross margin 63.9% 55.0% +16% Exceptional costs (1,000) (256) +290% Other administrative expenses (net) (22,984) (16,047) +43% Ope
Slide 5: Summary of results: Balance sheet
SUMMARY OF RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010 BALANCE SHEET £000’s 30 Sept 2010 30 Sept 2009 Fixed assets and investments 11,609 11,522 Inventories 12,883 12,268 Other working capital (8,697) (3,621) Cash 12,329 4,267 Shareholders’ funds 28,124 24,436 5
Slide 6: Capital expenditure analysis
CAPITAL EXPENDITURE ANALYSIS 2010/11 £000’s Actual H1 Forecast H2 Total New store expenditure 510 3,847 4,357 Kensington Church Street (Note 1) 600 7,000 7,600 Factory extension / improvements 420 859 1,279 Systems development 324 174 498 France and USA showrooms 30 230 260 Other 201 37 238 Total 2,
Slide 7: Revenue analysis by channel
REVENUE ANALYSIS BY CHANNEL ( VALUE OF SALES) UK Retail 59% UK Wholesale 12% UK Wholesale 11% International Wholesale 10% International Wholesale 7% International Franchisees 11% International International Franchisees 13% Retail 5% UK Retail 66% International Retail 6% Six months ended 30 September
Slide 8: Analysis of business volume by geography
ANALYSIS OF BUSINESS VOLUME BY GEOGRAPHY ( WHOLESALE VALUE OF SALES) Other 2% Own Retail 44% North America 1% Other 3% Asia 17% North America 2% Asia 8% Europe 13% Europe 17% UK Wholesale 14% Own Retail 60% UK Wholesale 19% Six months ended 30 September 2009 Six months ended 30 September 2010 8
Slide 9: Analysis of business volume by product
ANALYSIS OF BUSINESS VOLUME PRODUCT ( WHOLESALE VALUE OF ORDERS) Other 1% Shoes 2% Apparel 4% Luggage 7% Shoes 2% Apparel 4% Luggage 8% Small leather goods 14% Small leather goods 14% Bags 72% Bags 72% Six months ended 30 September 2009 Six months ended 30 September 2010 9
Slide 10: Wholesale shipments to third parties
WHOLESALE SHIPMENTS TO THIRD PARTIES SIX MONTHS ENDED 30 SEPTEMBER 2010 Six months Compared Current SS11 to 30 Sept 2010 to prior year Vs. SS10 £’000 % % Europe 10,517 +45% +61% Asia (Note 1) 4,669 +189% +181% North America 375 +149% +111% Other (Note 2) 665 +2% +217% Total 16,226 +76% +91% Note 1 –
Slide 11: Worldwide retail footprint September 2010
WORLDWIDE RETAIL FOOTPRINT SEPTEMBER 2010 Department Store Free Standing Total Shop-in-Shop Stores Own Stores UK Full Price - 9 9 UK Airport - 5 5 UK Off Price - 4 4 UK Concessions 26 - 26 France - 1 1 USA - 2 2 Total Own Stores 26 21 47 Partner Scandinavia - 9 9 Other European - 3 3 Asia 9 10 19 Mi
Slide 12: New store openings during 2010/11
NEW STORE OPENINGS DURING 2010/11 Own stores –New concession in De Bejinkorf, Amsterdam opened on 23 November 2010 –Relocated New Bond Street store opened on 1 December 2010 –Relocation of Manchester store to new Spinningfields mall opened on 8 December 2010 –New York flagship store on Spring Street
Slide 13: Retail segments: like-for-like performance
RETAIL SEGMENTS: LIKE-FOR-LIKE PERFORMANCE Six months to 30 Sept 2010 UK Full Price stores LFL (Note 1) +35% France Full Price store LFL +189% USA Full Price stores LFL +102% Total Full Price LFL +40% Off Price LFL +1% Total Retail LFL +29% Note 1 – This figure has been reduced by the shortage of in
Slide 14: 7 year revenue development
7 YEAR REVENUE DEVELOPMENT 14
Slide 15: Current trading and outlook
CURRENT TRADING AND OUTLOOK –Strong consumer demand continues –Retail sales up 47% for the 10 weeks to 4 December 2010, like-for-like up 47% –Like-for-like UK Retail sales in full price stores and departments store concessions up by 66% for the 10 weeks to 4 December 2010 –Spring/Summer 2011 orders
Slide 16: Retail segments: like-for-like performance
RETAIL SEGMENTS: LIKE-FOR-LIKE PERFORMANCE Six months to 30 Last 10 weeks to 4 Sept 2010 Dec 2010 UK Full Price stores LFL +35% +66% France Full Price store LFL +189% +377% USA Full Price stores LFL +102% +113% Total Full Price LFL +40% +71 Off Price LFL +1% -6% Total Retail LFL +29% +47% 16
Slide 17: Key challenges
KEY CHALLENGES –Scalability of back office infrastructure –Retaining / attracting top talent –Brand roll out in USA / Asia –Exploiting new media opportunities, particularly online –Security of supply chain –Fluctuations in exchange rates and world economy 17
Slide 18: Strategy
STRATEGY Brand –Develop outstanding product ranges that lead fashion tastes –Connect with different groups of consumers –Focus on quality / craftsmanship –Invest in brand marketing to facilitate international roll out –Invest in the best design talent to keep Mulberry fresh –Emphasise Englishness an
Slide 19: Strategy [2]
STRATEGY [2] International –Accelerate international rollout of Mulberry brand –Penetrate Asian markets –Develop US operation acquired from partner. Open new flagship store in New York by September 2011 –Exploit new markets with high calibre partners with local expertise –Expand web penetration to r
Slide 20: Contacts
CONTACTS Pelham Bell Pottinger Daniel de Bolder 0207 861 3881 Altium Capital Ben Thorne 0207 484 4076 Melanie Szalkiewicz 0207 484 4187 www.mulberry.com www.facebook.com/mulberry www.twitter.com/mulberry 20
Slide 21: MAIN TITLE
MAIN TITLE SUBTITLE HERE