Mulberry Group Plc · LSE:MUL
Mulberry — H1 2013/14 Earnings Presentation
28 slides from Mulberry's earnings presentation, December 2013
Slide 1: Interim Results for the Six Months Ended 30 September 2013
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013
Slide 2: Highlights for the Six Months Ended 30 September 2013
HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 TOTAL REVENUE UP 2% TO £78.1 MILLION (2012: £76.5 MILLION) ― Retail revenue up 6%, up 4% like-for-like ― UK retail up 5% ― International retail up 29% ― Wholesale down 5% PROFIT BEFORE TAX OF £7.2 MILLION (2012: £10.0 MILLION) ― Reflecting contin
Slide 3: Agenda
AGENDA 1. FINANCIAL REVIEW 2. OPERATING REVIEW 3. CURRENT TRADING AND OUTLOOK 3
Slide 4: 1. Financial Review
1. FINANCIAL REVIEW Sy
Slide 5: Revenue by Channel
1. Financial review 2. Operating review REVENUE BY CHANNEL VALUE OF SALES 3. Current trading and outlook £76.5m £78.1m (up 2%) RETAIL UP 6%, UP 4% LIKE-FOR-LIKE: ― UK retail up 5% £28.6m ― International retail up 29% £30.0m ― Online down 4% against strong (39%) (37%) growth last year WHOLESALE DOWN
Slide 6: Income Statement
1. Financial review 2. Operating review INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 3. Current trading and outlook £ MILLION 30 SEPTEMBER 30 SEPTEMBER VARIANCE 2012 2013 Revenue 76.5 78.1 +2% Gross profit 46.9 49.2 +5% Gross margin 61.3% 63.0% Administrative expenses (net) (37.1) (42
Slide 7: Net Administrative Expenses
1. Financial review 2. Operating review NET ADMINISTRATIVE EXPENSES FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 3. Current trading and outlook 45 40 £1.6m £1.2m £42.2m £2.3m 35 £37.1m 30 (£m) 25 20 15 10 5 0 H1 2012/13 New store Employee costs Other H1 2013/14 operating costs Note: New store operatin
Slide 8: Balance Sheet
1. Financial review 2. Operating review BALANCE SHEET AS AT 30 SEPTEMBER 2013 3. Current trading and outlook BALANCE SHEET (£ MILLION) 30 SEPTEMBER 31 MARCH 30 SEPTEMBER 2012 2013 2013 Fixed assets and investments 33.8 39.7 46.0 Inventories 36.9 35.7 33.4 Trade and other receivables 17.2 14.2 17.4 C
Slide 9: Capital Expenditure Analysis
1. Financial review 2. Operating review CAPITAL EXPENDITURE ANALYSIS FOR THE YEAR ENDING 31 MARCH 2014 3. Current trading and outlook 25 £10.7m £8.3m £19.0m £16.9m 20 £0.6m £3.6m £0.8m (£m) 15 £2.9m £3.9m £4.4m 10 £0.2m £10.9m £0.4m £1.6m £2.0m £8.8m £0.3m 5 £3.6m £6.2m £4.7m 0 Actual H1 Projected H
Slide 10: 2. Operating Review
2. OPERATING REVIEW 10
Slide 11: Key Priorities
1. Financial review 2. Operating review KEY PRIORITIES 3. Current trading and outlook 1. CREATIVE DIRECTOR APPOINTMENT 2. INTERNATIONAL EXPANSION 3. RAISE GLOBAL BRAND AWARENESS 4. CONSISTENT GLOBAL BRANDING, LOCAL RESONANCE 5. SOURCING AND PRODUCTION 11
Slide 12: International Expansion
1. Financial review 2. Operating review INTERNATIONAL EXPANSION OPENED 9 NEW STORES IN THE SIX MONTHS TO 30 SEPTEMBER 2013 3. Current trading and outlook -1 UK: 44 directly operated +3 +2 +3 NORTH AMERICA: ASIA 9 directly operated PACIFIC: EUROPE: 44 partner 10 directly operated 10 partner +1 MIDDLE
Slide 13: International Expansion
1. Financial review 2. Operating review INTERNATIONAL EXPANSION UNDER-EXPOSURE TO ASIA: A CHALLENGE AND AN OPPORTUNITY 3. Current trading and outlook EUROPEAN SALES TO ASIAN CUSTOMERS Mulberry 10% Luxury market 40% ASIA PACIFIC AS % GLOBAL SALES Mulberry 13% Luxury market 29% CHALLENGES: • BRAND AWA
Slide 14: Raising Brand Awareness
1. Financial review 2. Operating review RAISING BRAND AWARENESS COMMUNICATION: BRAND ACTIVITY, CONSUMER EVENTS, LONDON FASHION WEEK 3. Current trading and outlook 14
Slide 15: Raising Brand Awareness
1. Financial review 2. Operating review RAISING BRAND AWARENESS 3. Current trading and outlook HARRODS CHRISTMAS WINDOWS AND POP-UP STORE 15
Slide 16: Online
1. Financial review 2. Operating review ONLINE 3. Current trading and outlook UPGRADED WEB PLATFORM IN JULY 2013 UPGRADED PLATFORM TO OPTIMISE MULBERRY’S ONLINE PRESENCE E-COMMERCE COMMUNICATION ― Responsive design – optimised for tablet, ― Rich editorial content mobile and desktop ― Social media in
Slide 17: Product Development
1. Financial review 2. Operating review PRODUCT DEVELOPMENT NEW HANDBAG LAUNCHES PERFORMING STRONGLY 3. Current trading and outlook NEW AW13 STYLES PRICED ABOVE £1,000 ARE PERFORMING STRONGLY WILLOW 4TH BESTSELLING BAG BY VALUE 3RD BESTSELLING BAG IN USA DOUBLE ZIP BAYSWATER HIGHEST FULL PRICE SELL-
Slide 18: Product Development
1. Financial review 2. Operating review PRODUCT DEVELOPMENT SMALL LEATHER GOODS SALES GROWING 3. Current trading and outlook INCREASED COLOUR AND STYLE OPTIONS FOR AW13 SMALL LEATHER GOODS AND GIFTS SALES UP 8% NOW 14% OF SALES, UP FROM 13% LAST YEAR SLGs, 14% REVENUE H1 2013/14 18
Slide 19: Product Development
1. Financial review 2. Operating review PRODUCT DEVELOPMENT MEN’S 3. Current trading and outlook INCREASED MEN’S PRODUCTS BY 50% TO 120 SKUS FOR AW13 MEN’S PRODUCT SALES NOW 13% OF FULL PRICE RETAIL SALES, UP FROM 11% LAST YEAR Men's 40% LUXURY MARKET Men's 13% MULBERRY FULL-PRICE RETAIL SALES H1 20
Slide 20: Production
1. Financial review 2. Operating review PRODUCTION NEW FACTORY COMPLETED 3. Current trading and outlook “WILLOWS” FACTORY IN SOMERSET COMPLETED ON TIME AND TO BUDGET — Production commenced during June 2013 and training phase on schedule with 240 of 300 staff now on site — On track to achieve target
Slide 21: Operations
1. Financial review 2. Operating review OPERATIONS 3. Current trading and outlook SYSTEMS UPGRADE UNDERWAY SUPPLY CHAIN ― Supply chain system implementation underway, on track to go live in 2014/15 ― Outcomes: End-to-end visibility, efficient planning and production allocation, improved forecasting
Slide 22: 3. Current Trading and Outlook
3. CURRENT TRADING AND OUTLOOK 22
Slide 23: Current Trading and Outlook
1. Financial review 2. Operating review CURRENT TRADING AND OUTLOOK 3. Current trading and outlook RETAIL — Retail sales up 3% for the nine weeks to 30 November 2013 (excluding the sample sale, moved from November to Q4) — International retail sales up 49% for the nine weeks to 30 November 2013 — On
Slide 24: Contacts
CONTACTS PELHAM BELL POTTINGER 020 7861 3232 Daniel de Belder MULBERRY INVESTOR RELATIONS 020 7605 6771 Amelia Fincher ALTIUM 020 7484 4040 Ben Thorne Katie Hobbs BARCLAYS 020 7623 2323 Jon Bathard-Smith MULBERRY.COM blog.mulberry.com Twitter @mulberry_editor facebook.com/mulberry 24
Slide 25: Appendix: Revenue by Region
APPENDIX REVENUE BY REGION £76.5m £78.1m £4.0m £4.9m £11.5m £11.1m £13.5m £13.0m £47.5m £49.1m H1 2012/13 H1 2013/14 UK Europe Asia Pacific & Middle East North America 25
Slide 26: Appendix: Worldwide Retail Footprint
APPENDIX WORLDWIDE RETAIL FOOTPRINT: SEPTEMBER 2013 Department store Free Standing Changes from Shop-in-Shop Stores Total 31 March 2013 Directly Operated Stores UK 25 19 44 -1 Europe 3 7 10 +2 North America - 9 9 +3 Total Own Stores 28 35 63 +4 Partner Stores Scandinavia - 9 9 - Other European - 1 1
Slide 27: Appendix: Revenue by Product
APPENDIX REVENUE BY PRODUCT REVENUE BY PRODUCT (H1 2013/14) Bags £59.1m (76%) (2012/13: 75%) Small leather goods and gifts £10.6m (14%) (2012/13: 13%) Luggage £3.4m (4%) (2012/13: 5%) Apparel £3.5m (4%) (2012/13: 4%) Footwear £0.9m (1%) (2012/13: 1%) Other £0.6m (1%) (2012/13: 1%) 27
Slide 28: Appendix: Extending the Product Mix
APPENDIX EXTENDING THE PRODUCT MIX £1,000+ BAGS & RTW 17% £500 - £1,000 BAGS, RTW & SHOES 21% <£500 RTW, SHOES, SLGS, SOFT ACCESSORIES 62% PRODUCT MIX BY % OF SKUS 28