Mulberry already says so: Covid-19 is boycotting our recovery. The organization had published its (poor) results, for the first quarter, last November. They showed that the second half of the year was to be more profitable. But now that the deadline is closing in (March 28th), the Covid-19 pandemic forces the company to go back on its forecast. Mulberry expects “a small loss”. A loss that will be added to that experiences in the first months of the fiscal year.
Covid-19 boycotts the recovery
The British company stated, while in the middle of the pandemic emergency, that it’s implementing a defensive strategy. At the top of the agenda is “cost reduction”, of an income statement that Mulberry itself defines as “solid”. As of March 20th, the company had 8.8 million pounds of liquidity. The British brands defined an action plan: suspension pf payments to shareholders; case-by-case analysis of each individual store in the UK; identification of cost saving opportunities.
Changing scenario
According to Mulberry, it is impossible to offer significance clarity over future performances given the speed with which the situation is changing. “Our top priority is the health of our colleagues, clients and all interested parties – states Mulberry’s CEO Thierry Andretta -. Even though it is unclear what the precise impact of the virus will be on the market and our activities, we trust in the strength of our brand and our long-term strategy”.
Read also:
- End of a five-years period in Mulberry: Johnny Coca leaves
- 12.5% of Mulberry goes to Frasers Group, big player in fashion retail
