Mulberry (OTC:MLBGF, OTC:MLBGY) is a British luxury goods company best known for its leatherworking. It has its own network of shops and a well-regarded brand in the luxury space. However, it is a small player and that has exacerbated its struggles amid demand depressed by the pandemic. Avoid.
The company has a key brand, Mulberry. The brand is well-regarded but the lack of a portfolio approach has made itself felt recently, as when consumers tighten their belts, there is no lower priced brand in the portfolio for them to trade down to. Additionally, as an independent, niche player, the brand lacks the heft and security that come with being part of a larger luxury goods house like Louis Vuitton Möet Hennessy (OTCPK:LVMHF, OTCPK:LVMUY) or Kering (OTCPK:PPRUF, OTCPK:PPRUY). It thus relies more on the attractiveness of its mainline brand.
Despite its British associations, the company sources from multiple countries