I’m partial to the odd small-cap share, if it floats my boat. Unfortunately, these two don’t, leaving me keen to avoid them. Beleaguered luxury brand The first stock’s ( ).
Shares of the luxury accessories maker have fallen 76% in just under four years! This has seen the company’s slump to just £63m. Part of me thinks that’s too low for a company that posted £153m in FY24 sales (which ended in March). On the other hand, Mulberry’s being hammered by the global slowdown in demand for luxury goods.
In November, the company reported that revenue dropped 19% to £69.7m in the six months to the end of September. Sales fell in every region, with particular weakness in Asia.
Gross margin contracted to 66.5% from 70.4% and the loss widened by 23% to £15.
7m. Grim stuff. The company doesn’t see things picking up anytime soon, saying the “ “.
Now, Mulberry’s the UK’s largest designer and manufacturer of luxury leather goods. I don’t like to see the British brand suffering like this. So I hope new CEO Andrea Baldo is successful in cutting costs, renewing the brand, and restoring profits.
Perhaps he’ll succeed, or maybe the firm will be at a higher price (though it rejected two bids from last year). Truth is, I haven’t the foggiest what’s going to happen. With the firm posting losses, there’s just far too much uncertainty for me to invest here.
Not ready for lift-off The next penny stock I’m not touching with a bargepole in February is ( ). This is the .
