Financial Analysis of Mulberry
Mulberry
- Gross margins
2011 - Higher proportion of sales being made at full retail price throughout the year and because there was relatively little end of season stock for clearance compared to the previous year.
2010 – Dropped slightly form 60% to 59% because of price discounting within our retail business as we cleared surplus inventory during the first quarter
2009 - The proportion of retail sales to wholesale sales is increased, but due to the devaluation of sterling, the margins stay the same this year.
Overall, Burberry and Hermes are more profitable than Mulberry before subtracting all the other operating costs.
- Profit margin
A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors.
Mulberry has a lower profit margin compared to Burberry and Hermes in every year except 2009. Which means that In 2009, Mulberry has better control over its costs than Burberry did in the same year.
2011- the profit margins increased dramatically because Mulberry has a really successful strategy in 2010- giving free bags to Alexa Chung in every sizes and colours. Furthermore, more full price products transactions and sold more products in the stock also the factors to increase the profit margin in this year.
Burberry: 2009- Invest their money on technology – live-stream 3D fashion show
Operating margin:
* does not account for the capital (investment) used to generate the profit.
Same in here, Burberry and Hermes’s net profits are higher than Mulberry except 2009. Because Burberry spent a lot money on their technology
Return on equity:
High ROE yields no immediate benefit. Since stock prices are most strongly determined by earnings per share (EPS), you will be paying twice as much (in Price/Book terms) for a 20% ROE company as for a 10% ROE company.
The growth rate will be lower if the earnings are used to buy back shares
Mulberry:
The Group manages its capital to
- Gross margins
2011 - Higher proportion of sales being made at full retail price throughout the year and because there was relatively little end of season stock for clearance compared to the previous year.
2010 – Dropped slightly form 60% to 59% because of price discounting within our retail business as we cleared surplus inventory during the first quarter
2009 - The proportion of retail sales to wholesale sales is increased, but due to the devaluation of sterling, the margins stay the same this year.
Overall, Burberry and Hermes are more profitable than Mulberry before subtracting all the other operating costs.
- Profit margin
A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors.
Mulberry has a lower profit margin compared to Burberry and Hermes in every year except 2009. Which means that In 2009, Mulberry has better control over its costs than Burberry did in the same year.
2011- the profit margins increased dramatically because Mulberry has a really successful strategy in 2010- giving free bags to Alexa Chung in every sizes and colours. Furthermore, more full price products transactions and sold more products in the stock also the factors to increase the profit margin in this year.
Burberry: 2009- Invest their money on technology – live-stream 3D fashion show
Operating margin:
* does not account for the capital (investment) used to generate the profit.
Same in here, Burberry and Hermes’s net profits are higher than Mulberry except 2009. Because Burberry spent a lot money on their technology
Return on equity:
High ROE yields no immediate benefit. Since stock prices are most strongly determined by earnings per share (EPS), you will be paying twice as much (in Price/Book terms) for a 20% ROE company as for a 10% ROE company.
The growth rate will be lower if the earnings are used to buy back shares
Mulberry:
The Group manages its capital to