Mulberry expects small H2 loss from coronavirus but remains positive
24 Mar 2020
Mulberry has provided an update in regards to the Covid-19 pandemic, saying it expects to make a small loss in the second half of the financial year but “remains confident” in the strength of the brand and its long-term strategy.
The luxury British handbag label said it is taking all appropriate action to mitigate the impact of the virus in line with the government's advice and is identifying ways to cut costs.
As of 21 March, the brand has closed all its UK stores until further notice and is currently reviewing its international portfolio of stores on a case by case basis.
The company had previously said it expected to be profitable and cash generative in the second half of the year, but now due to the coronavirus outbreak expects to make “a small loss”.
Mulberry said it has a “robust” balance sheet with net cash as of 8.8 million pounds as of 20 March 2020. It also said it has additional liquidity through its 19 million pounds of undrawn bank facilities and “maintains a positive dialogue with its lenders with regard to optimising its operational flexibility and banking covenants.”
Mulberry CEO Thierry Andretta said in a statement: “Our highest priority at this time is the health and safety of our colleagues, customers, and all other stakeholders. Whilst it is uncertain how long the virus will directly impact our markets and our businesses, we remain confident in the strength of our brand, and in our strategy over the long term.”
Photo credit: Mulberry