Mulberry Group Plc · LSE:MUL
Mulberry — H1 2014/15 Earnings Presentation
25 slides from Mulberry's earnings presentation, December 2014
Slide 1: Interim Results for the Six Months Ended 30 September 2014
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
Slide 2: Agenda
AGENDA 1. FINANCIAL REVIEW 2. STRATEGY 3. CURRENT TRADING AND OUTLOOK 4. DIGITAL UPDATE 3
Slide 3: Highlights for the Six Months Ended 30 September 2014
HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 TOTAL REVENUE DOWN 17% TO £64.7 MILLION (2013: £78.1 MILLION) ― Results in line with guidance given in October ― Total Retail sales down 9% ― UK Retail down 16%; Full price down 12% and outlet down 23% ― International Retail up 20% ― Wholesale do
Slide 4: 1. Financial Review
a MULBERRY 1. FINANCIAL REVIEW
Slide 5: Revenue by Channel
REVENUE BY CHANNEL VALUE OF SALES £78.1m £64.7m (down 17%) RETAIL DOWN 9%, -13% LIKE-FOR-LIKE: ― UK Retail down 16% £28.6m ― International Retail up 20% (37%) ― Online up 1% £19.6m (30%) WHOLESALE DOWN 31%: ― Inventory reduction and conservative ordering by £49.5m our Asian and European partners (63
Slide 6: Income Statement
INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 £ MILLION 30 SEPTEMBER 2013 30 SEPTEMBER 2014 VARIANCE Revenue 78.1 64.7 -17% Gross profit 49.2 38.8 -21% Gross margin 63.0% 59.9% Operating expenses (net) -42.2 -40.0 Operating profit/(loss) 7.1 (1.2) Profit/(loss) before tax 7.2 (1.1) Bas
Slide 7: Net Operating Expenses
NET OPERATING EXPENSES FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 50 £2.8m -£1.5m 40 £42.2m -£1.4m -£1.3m -£0.8m £40.0m (£m) 30 20 10 0 2013/14 New store Variable Advertising Employee Other 2014/15 operating sales and costs costs overheads promotion Notes: New store operating costs include employee
Slide 8: Balance Sheet
BALANCE SHEET AS AT 30 SEPTEMBER 2014 BALANCE SHEET (£ MILLION) 30 SEPTEMBER 2013 30 SEPTEMBER 2014 VARIANCE Fixed assets and investments 46.0 50.9 11% Inventories 33.4 39.3 18% Trade and other receivables 17.4 14.0 -20% Current tax asset - 1.2 n/a Cash 11.1 3.6 -68% Current liabilities (26.9) (28.6
Slide 9: Capital and Investment Expenditure Analysis
CAPITAL AND INVESTMENT EXPENDITURE ANALYSIS FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2014 25 £12.0m £6.0m £18.0m £15.5m 20 £0.5m § § § £1.0m § £0.2m £0.6m (£m) 15 £0.1m £2.8m £15.9m £0.1m £4.4m £11.8m 10 £0.5m £8.1m 5 £0.9m £0.5m £4.1m 0 Actual H1 Projected H2 2014/15 2013/14 Store expenditure Factori
Slide 10: 2. Strategy
MULBERRY 2. STRATEGY
Slide 11: Key Priorities
KEY PRIORITIES 1. PRODUCT 2. DISTRIBUTION 3. OPERATIONS 4. BRAND AND MARKETING 12
Slide 12: 1. Product
1. PRODUCT REINVIGORATING OUR OFFERING HAS BEEN A TOP PRIORITY — Introducing product across the complete price spectrum — Successful launch of Tessie and Cara Delevingne bag families — Spring Summer 15 collections introduced in stores during November: • New products include the Blossom tote, mini Li
Slide 13: 1. Product: Handbag Price Positioning
1. PRODUCT HANDBAG PRICE POSITIONING PRODUCT MIX BY % OF SKUS > £1,000 29% > £1,000 54% £1,000 26% £1,000 £800 20% £800 25% 40% £500 £500 1% 5% £350 £350 SPRING SUMMER 2014 SPRING SUMMER 2015 14
Slide 14: 2. Distribution
2. DISTRIBUTION BUILD THE BUSINESS INTERNATIONALLY WITH STRATEGICALLY PLACED STORES COMPLEMENTED BY: — A strong digital presence — Selective multi-brand relationships 120 STORES (INCLUDING, FRANCHISE) AS OF 30 SEPTEMBER 2014: — Directly-operated stores: two opened during H1 (Las Vegas, Hamburg). — P
Slide 15: 2. Distribution: Worldwide Retail Footprint
2. DISTRIBUTION WORLDWIDE RETAIL FOOTPRINT: SEPTEMBER 2014 Department store Free Standing Total Changes from Total Shop-in-Shop Stores Sept 2014 31 March 2014 March 2014 Directly Operated Stores UK 25 21 46 1 45 Europe 3 9 12 1 11 North America - 11 11 1 10 Total Own Stores 28 41 69 3 66 Partner Sto
Slide 16: 3. Operations
3. OPERATIONS SCALABLE PLATFORM COMPLETED ROLL-OUT OF NEW EPOS SYSTEM INTO OUR OWN STORES — Better inventory control — Supports the new CRM application IMPLEMENTED FIRST PHASE OF OMNI-CHANNEL PROJECT FOR OUR UK FULL PRICE STORES — Includes in-store collection of online orders (Click & Collect), in-s
Slide 17: 4. Brand and Marketing
4. BRAND AND MARKETING LEVERAGE BETTER OUR ASSETS RE-ENGAGE WITH OUR CUSTOMERS BY REINFORCING OUR CORE BRAND VALUES — Fashion-led, modern luxury, British lifestyle, Heritage/made in England IMPLEMENTED SOPHISTICATED CRM APPLICATION — Will enable us to gain a deeper insight into our customers’ behavi
Slide 18: 3. Current Trading and Outlook
3. CURRENT TRADING AND OUTLOOK 19
Slide 19: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK Retail like-for-like sales Retail total sales 26 weeks to 9 weeks to 26 weeks to 9 weeks to This year vs. last year (%) 30-Sep-14** 29-Nov-14 30-Sep-14** 29-Nov-14 UK full price -12% +5% -12% +2% UK outlet -25% -9% -23% +6% UK Retail total* -17% -1% -16% +4% International
Slide 20: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK INTERNATIONAL EXPANSION — Since the end of September, two further directly-operated stores opened (Frankfurt, Dallas) and one concession opened in Paris (Galeries Lafayette), reaching our target of five new DOS for the financial year — Since the end of September, one part
Slide 21: #WinChristmas
#WINCHRISTMAS
Slide 22: Contacts
CONTACTS BELL POTTINGER 07977 927 142 Daniel de Belder MULBERRY INVESTOR RELATIONS 020 7605 6795 Allegra Perry ALTIUM 020 7484 4040 Ben Thorne BARCLAYS 020 3134 8370 Marcus Jackson Nicola Tennent MULBERRY.COM blog.mulberry.com Twitter@mulberry_editor facebook.com/mulberry 23
Slide 23: Appendix: Revenue by Region
APPENDIX REVENUE BY REGION £78.1m £64.7m £4.9m £11.1m £5.2m £13.0m £5.8m £10.9m £49.1m £42.8m H1 2013/14 H1 2014/15 UK Europe Asia Pacific and Middle East North America 24
Slide 24: Appendix: Revenue by Region / Channel
APPENDIX REVENUE BY REGION / CHANNEL H1 2013/14 H1 2014/15 £m £m Retail Wholesale Total Retail Wholesale Total UK 41.6 7.5 49.1 35.8 7.0 42.8 Europe 3.5 9.5 13.0 4.1 7.3 11.4 Asia Pacific and 0.1 11.0 11.1 0.2 5.1 5.3 Middle East North America 4.3 0.6 4.9 5.0 0.2 5.2 Total Revenue 49.5 28.6 78.1 45.
Slide 25: Appendix: Revenue by Product
APPENDIX REVENUE BY PRODUCT REVENUE BY PRODUCT (H1 2014/15) Bags £48.3m (75%) (H1 2013/14: 76%) Small leather goods and gifts £9.7m (15%) (H1 2013/14: 14%) Luggage £2.6m (4%) (H1 2013/14: 4%) Apparel £2.6m (4%) (H1 2013/14: 4%) Footwear £0.9m (1%) (H1 2013/14: 1%) Other £0.6m (1%) (H1 2013/14: 1%) 2