Mulberry revenue falls 8.4% amid luxury spending slowdown
Group revenue for the 39 weeks ended 30 December 2023 was up 0.1% versus the prior year, with gross margins in line with those reported for the first half of the year
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Mulberry has revealed that its group revenue dropped 8.4% for the 13 weeks ended 30 December 2023.
The company stated that this was impacted by the challenging macroeconomic backdrop and decline in luxury consumer spending.
Mulberry also revealed that in the run up to Christmas it maintained its full price sales approach.
As a result the company’s overall retail sales for the period dropped 1.5% although they increased 0.6% on a constant currency basis.
Its retail sales in the UK dropped 4% but its international sales rose 3.9% and 10.8% on a constant currency basis.
Group revenue for the 39 weeks ended 30 December 2023 was up 0.1% versus the prior year, with gross margins in line with those reported for the first half of the year.
Thierry Andretta, CEO, said: “In the run up to Christmas, the macro-economic environment continued to impact consumer spending in the luxury retail sector, which Mulberry was not immune from. Despite this, the Group maintained its discipline and focus on a full price strategy against an unusually high promotional environment.
“Our international sales remained positive, supported by our strategy to bring in-house ownership of overseas stores. In the UK, we continue to believe the lack of VAT-free shopping is impacting the retail landscape, as well as the hospitality, leisure and tourism sectors. Looking ahead, we are continuing to execute our plans and remain confident that our investments will underpin future sustainable growth.”
