Mulberry Group PLC Trading Update (7367Y)
January 29 2014 - 2:00AM
UK Regulatory
TIDMMUL
RNS Number : 7367Y
Mulberry Group PLC
29 January 2014
Mulberry Group PLC ("Mulberry")
Trading update
Mulberry Group plc, the English luxury brand, is today updating
the market on trading for the 17 weeks ended 25 January 2014.
Retail growth in international markets has continued during
December and January; however the trading environment in the UK has
deteriorated over the period and in the wholesale channel the
Korean market has been significantly more challenging than
anticipated.
-- Total retail sales were 3% below last year for the 17 weeks
to 25 January 2014, reflecting the competitive environment in the
UK, with substantial discounting in the sector over the Christmas
trading period.
This Year relative to Last Year
------------------------------- -----------------------------------------
9 weeks to 8 weeks to 17 weeks
30 November 25 January to
2013 2014 25 January
2014
------------------------------- ------------- ------------ ------------
Total retail sales (excluding
the sample sale, moved
from November to February) +3% -7% -3%
------------------------------- ------------- ------------ ------------
International retail sales +49% +34% +40%
------------------------------- ------------- ------------ ------------
-- In recent days it has also become clear that wholesale order
cancellations from Korean customers are likely to be significant
and we now expect wholesale sales for the year ending 31 March 2014
to be down approximately 10% compared to last year.
This reduction in wholesale sales is expected to offset the
growth in retail sales and we now expect total sales for the year
ending 31 March 2014 to be broadly in line with the prior year.
In combination with the committed costs associated with the
store opening programme undertaken over the last two years, the
lower than anticipated level of sales is expected to result in
profit before tax for the year ending 31 March 2014 being
substantially below current market expectations.
Bruno Guillon, Chief Executive Officer, commented:
"Due to tough trading conditions over the Christmas period which
saw significant discounting across the market, Mulberry has
experienced lower than expected UK retail sales which, together
with wholesale order cancellations from Korea, will adversely
impact our profit this year. Despite this, the company continues to
be cash generative and to invest in the ongoing process of
transforming Mulberry from a domestic to a global luxury brand, the
progress of which is demonstrated by the continued growth in
international retail sales."
For further details please contact:
Pelham Bell Pottinger
Dan de Belder 0207 861 3232
Altium
Ben Thorne 0207 484 4076
Barclays
Jon Bathard-Smith / Nicola Tennent 0203 623 2323
Mulberry Investor Relations
Amelia Fincher 0207 605 6771
This information is provided by RNS
The company news service from the London Stock Exchange
END
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