Mulberry Group Plc officially reported a loss during the first half of the fiscal year. Still, the U.K.-based company revealed that its strategy to restore growth is beginning to bear fruit. The dis-satisfactory results of the luxury leather-goods maker came as a result of the difficult conditions at the luxury-goods market, as well as of the declining customer demand in China.
The Executive Chairman, Godfrey Davis, said in an interview for the Wall Street Journal: “I’m feeling encouraged but I know there is still a lot to do, the challenge is very much to get the business back growing, which I think we’ve made good steps with.” Mr. Davis also added: “There has been quite a significant turnaround in sales…That is encouraging and a result of the new product we’ve introduced and the marketing we’ve been doing. If those trends continue through to Christmas that will be good.”
The company stated that it registered a pre-tax loss estimated to £1.1 million over the six months that ended on September 30th. In comparison, it posted a pre-tax profit of £7.2 million during the same period a year ago.
According to Mulberrys statement, sales have risen over the past couple of months. The total retail sales of the leather-goods manufacturer were reported to have climbed by 8%, while there has been a 23-percent increase in its international retail sales. In comparison, Mulberry unveiled a 9% decline of its total retail sales, which reached £45.1 million and a 20% increase of its international retail sales, which rose to £7.5 million in the first six months of the current fiscal year. Sales were reported to have been boosted by increased demand for Mulberrys new Blossom bag, which comes at a price of £495, as well as by the Mimi Lily model, which is priced at £350.
The total revenue of Mulberry contracted 17% to reach £64.7 million over the first half of the financial year.
Mulberry Group Plc traded at GBX 783.95 per share, down 0.77% as of 9:22 GMT today, marking a one-year decrease of 23.07%. The company is valued at GBP 467.98 million. According to the Financial Times, the 4 analysts offering 12-month price targets for Mulberry Group Plc have a median target of GBX 725.00, with a high estimate of GBX 796.00 and a low estimate of GBX 600.00. The median estimate represents a -8.23% decrease from the last price of GBX 790.00.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
