- Mulberry cancels dividend as full-year loss widens due to the Coronavirus Pandemic.
- The luxury fashion company reports £149.3 million of revenue in fiscal 2020.
- The British firm renegotiates covenants and extends banking facilities with HSBC.
In an announcement on Monday, Mulberry Group plc (LON: MUL) said it concluded fiscal 2020 with a broader pre-tax loss attributed to higher costs. The dovish performance, due to the Coronavirus pandemic that has so far infected more than half a million people in the United Kingdom and caused over 42 thousand deaths, also pushed the company into suspending its final dividend on Monday.
Shares of the company were reported trading about 5% down in premarket trading on Monday. On market open, the stock tanked another 5% to hit an intraday low of 151 pence per share. In comparison, Mulberry started the year at a much higher per-share price of 285 pence.
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It has now recovered from a year to date low of 126 pence per share in March when the COVID-19 restrictions pushed its stores into temporarily shutting down. Confused about choosing a reliable stockbroker to trade online? Here’s a comparison of the top few to get you started.
Mulberry reports £47.9 million of pre-tax loss
In the financial year that concluded on 28th March, Mulberry reported £47.9 million of pre-tax loss versus £5.0 million last year. The luxury goods company said that its revenue in fiscal 2020 came in at £149.3 million as compared to a higher £166.3 million in the previous year.
Mulberry also highlighted on Monday that revenue for the 26 weeks that concluded on 26th September was still 29% down on a year over year basis. But signs of recovery were starting to show as it reopened its stores for the public after months of inactivity due to the COVID-19 crisis.
In fiscal 2021, Mulberry added, trading has been better than its expectations. The company expressed confidence that it will be able to reduce its losses this year. According to the luxury fashion company:
“The strength of our digital business has resulted in initial sales in the period to date being ahead of early expectations, with growth in Asia helping to offset some of the impact of the shut down in the U.K., Europe, and North America.”
Mulberry extends banking facilities with HSBC
Mulberry also highlighted to have renegotiated covenants amidst the ongoing health crisis. It has banking facilities with HSBC that it said have been extended until March 2022. In June, Mulberry said it will slash its workforce by 25%.
At the time of writing, Mulberry is valued at £90.72 million.