Is Mulberry Group PLC a better buy than Burberry Group plc and Unilever plc after today’s results?

Does Mulberry Group PLC (LON:MUL) (MUL.L) offer more upside potential than Burberry Group plc (LON:BRBY) (BRBY.L) and Unilever plc (LON:ULVR) (ULVR.L)?

Mulberry
Mulberry

Mulberry Group PLC (LON:MUL) (MUL.L) has released results for the 12 months to the end of March 2018 today. They show a rise in profit before tax from existing business of 36%, with its international growth potential remaining relatively high.

The company has been able to expand its presence in Asia, with it opening five new stores and delivering two relocations during the period. It has also expanded its omni-channel operations, while a partnership with Toplife has been launched in China.

The company’s new products have continued to gain momentum. This is particularly true in international markets, where sales increased by 20% during the period. This helped to push total sales up by 3%, with the UK’s performance being flat versus the previous year.

Mulberry’s current trading has been relatively mixed. LFL (like-for-like) sales in the 10 weeks to 2 June are down by 9% in the UK, while they have risen by 1% internationally. This is due to lower footfall, which is affecting a wide range of retailers and consumer goods companies at the moment.

In the last year the Mulberry share price has fallen by 29%. That’s a worse performance than other international consumer goods companies such as Burberry Group plc (LON:BRBY) (BRBY.L) and Unilever plc (LON:ULVR) (ULVR.L). Burberry has gained 22% in the last 12 months, while the Unilever share price is down 2% in the same time period.

In my view, Mulberry has investment appeal for the long term. The changes being made to the company appear to be having a positive impact on its performance. International growth potential seems to be high, and further growth could be on the horizon in this area. Although the UK may remain a tough market in the near term, I believe the stock could offer turnaround potential in the coming years.








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Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email info@investomania.co.uk or use one of the other contact methods available on the 'Contact Us' page