Mulberry (MUL) AI Stock Analysis

• Market Cap: £73.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -15.13%
• EPS Growth: 48.56%
• Country: UK
• Employees: 1,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.11
• Shares Outstanding: 70,577,194
• 10 Day Avg. Volume: 4,209
• 30 Day Avg. Volume: 2,811
• PEG Ratio: 0.20
• Price to Book (P/B): -20.64
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 10.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: 101.00p ▼(-3.81% Downside)

Mulberry's overall stock score is primarily influenced by its challenging financial performance, with significant risks due to declining revenues and high leverage. However, technical indicators show bullish momentum, and recent corporate events suggest strategic improvements, providing some optimism for future performance.

Positive Factors

Brand Heritage and Loyalty

Mulberry's strong brand heritage and loyal customer base contribute to repeat purchases and brand advocacy, providing a stable revenue stream and competitive advantage in the luxury market.

Product Craftsmanship

Emphasis on craftsmanship and sustainability enhances Mulberry's reputation for quality, appealing to discerning consumers and supporting long-term brand strength in the luxury sector.

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which are crucial for maintaining profitability in the competitive luxury market.

Negative Factors

Revenue Decline

A significant decline in revenue suggests challenges in market demand or competitive positioning, which could impact long-term growth and market share.

High Leverage

High leverage indicates financial risk and limits financial flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and high costs, which could hinder the company's ability to achieve sustainable profitability and compete effectively.

Mulberry Business Overview & Revenue Model

Company Description

Mulberry Group plc, through its subsidiaries, designs and manufactures fashion accessories and clothing in the United Kingdom, Asia Pacific, and internationally. It provides briefcases, messenger bags, and backpacks; wallets, and purses and pouches; sunglasses, scarves, gloves and hats, belts, cufflinks, keyrings, and shoes; jewelry, organisers, leather care, and care products; gifts; and luggage, holdalls, bag, and other travel accessories for men and women, as well as ready-to-wear and eyewear products. The company sells its products through its retail shops, concessions, and wholesale distribution channels under the Mulberry brand, as well as sells its products online. Mulberry Group plc was founded in 1971 and is based in Bath, the United Kingdom. Mulberry Group plc is a subsidiary of Challice Limited.

How the Company Makes Money

Mulberry generates revenue primarily through the sale of its luxury handbags and accessories, which are its core products. The company has a diversified revenue model that includes direct retail sales from its own boutiques and e-commerce platforms, as well as wholesale distribution to select department stores and luxury retailers. In addition to product sales, Mulberry benefits from its brand partnerships and collaborations that enhance its market visibility and attract new customers. Seasonal collections and limited-edition releases also contribute to sales spikes, particularly during key retail periods. Furthermore, the brand's focus on sustainability and craftsmanship appeals to a growing demographic of environmentally conscious consumers, supporting long-term revenue growth.

Mulberry Financial Statement Overview

Summary

Mulberry faces significant financial challenges, with declining revenues, negative profitability margins, and a highly leveraged balance sheet. While there are some positive aspects in cash flow conversion, the company's financial health is concerning, with high risks associated with its current financial structure.

Income Statement

Mulberry's income statement reveals a challenging financial position with declining revenue and profitability. The company experienced a significant revenue decline of 13.54% in the latest period, following a slight decrease in the previous year. The gross profit margin remains relatively strong at 66.81%, but the net profit margin is negative at -25.23%, indicating operational inefficiencies and high costs. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet shows a concerning financial structure with a negative stockholders' equity, resulting in a highly leveraged position. The debt-to-equity ratio is extremely high at -24.86, indicating significant financial risk. Despite this, the return on equity is positive at 11.67%, suggesting some ability to generate returns, albeit with high risk. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis indicates some positive aspects, with a free cash flow to net income ratio of 0.63, suggesting some ability to convert income into cash. However, the free cash flow growth rate is negative at -20.16%, reflecting a decline in cash generation. The operating cash flow to net income ratio is low at 0.14, indicating limited cash flow from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.18M	120.39M	152.84M	159.13M	152.41M	114.95M
Gross Profit	81.00M	80.44M	107.14M	113.25M	109.31M	59.89M
EBITDA	-5.63M	-13.29M	-13.07M	30.93M	36.83M	21.97M
Net Income	-21.91M	-30.38M	-33.51M	13.24M	19.98M	4.77M
Balance Sheet
Total Assets	83.42M	86.69M	117.72M	159.25M	133.76M	119.88M
Cash, Cash Equivalents and Short-Term Investments	7.20M	8.20M	7.14M	6.87M	25.67M	11.82M
Total Debt	68.17M	64.71M	81.21M	84.16M	68.65M	78.55M
Total Liabilities	100.94M	97.47M	106.84M	112.48M	96.01M	101.18M
Stockholders Equity	-9.22M	-2.60M	17.41M	53.21M	42.21M	22.27M
Cash Flow
Free Cash Flow	-9.82M	5.13M	-9.65M	-10.21M	13.90M	12.45M
Operating Cash Flow	-9.31M	8.10M	133.00K	834.00K	19.21M	16.57M
Investing Cash Flow	-1.26M	-2.86M	-10.02M	-14.17M	8.08M	-4.10M
Financing Cash Flow	9.09M	-4.10M	10.35M	-5.70M	-13.43M	-8.32M

Mulberry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MUL, the sentiment is Positive. The current price of 105 is above the 20-day moving average (MA) of 100.20, above the 50-day MA of 96.08, and above the 200-day MA of 94.32, indicating a bullish trend. The MACD of 2.47 indicates Negative momentum. The RSI at 92.42 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MUL.

Mulberry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURY	71 Outperform	£1.35B	10.51	6.16%	1.18%	9.51%	-31.96%
DOCS	64 Neutral	£733.46M	47.44	4.61%	3.36%	-2.59%	-46.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ASC	59 Neutral	£322.49M	-1.08	-81.34%	―	-14.89%	12.08%
BRBY	55 Neutral	£4.52B	-166.11	-3.00%	―	-9.44%	-170.53%
MUL	52 Neutral	£73.67M	-3.36	―	―	-15.13%	48.56%
DEBS	46 Neutral	£267.16M	-1.32	-172.24%	―	-65.42%	27.73%

Mulberry Corporate Events

Mulberry Group Reports Strong First Half with Strategic Focus on Profitability

Mulberry Group plc reported a strong first half of the financial year, driven by its ‘Back to the Mulberry Spirit’ strategy, which focuses on full-price sales and cost management. Despite a 4% decline in group revenue to £53.9 million, the company improved its gross margin to 69% and reduced its pre-tax loss by more than half to £6.9 million. The company is optimistic about the festive trading period, supported by new product launches and a Christmas campaign. Mulberry is also enhancing its store network and digital platforms, aiming for sustainable profit and cash generation.

Mulberry Group PLC Successfully Concludes AGM with Strategic Insights

Mulberry Group PLC announced that all resolutions proposed at its Annual General Meeting on September 10, 2025, were passed, except for one resolution which was withdrawn. The CEO, Andrea Baldo, presented the company’s strategy, and the presentation slides will be available on the company’s website. This development underscores Mulberry’s ongoing strategic initiatives and reflects shareholder support for the company’s direction.