Mulberry revenues decline 4% in FY24
There was a 3.2% decline in sales in the UK and Asia Pacific, which was particularly impacted by the macroeconomic climate in China and reduced footfall across the region
Mulberry Group revenues fell by 4% in the year ended on 30 March compared to the previous year against a backdrop of challenging macroeconomic conditions and a decline in luxury consumer spending.
Losses for the full year will be impacted by the additional operational costs of new stores in Sweden and Australia and ongoing important investments, including technology, supporting future growth of the group.
Retail sales slightly increased by 0.3%, in line with the prior year, driven by growth in Europe and the United States due to increased brand awareness as well as the company’s customer strategy.
However, there was a 3.2% decline in sales in the UK and Asia Pacific, which was particularly impacted by the macroeconomic climate in China and reduced footfall across the region.
The decline in franchise and wholesale sales was broadly in line with the first half of FY24, due to wholesale arrangements which converted to retail.
Thierry Andretta, chief executive officer, said: “WHile we achieved positive revenue growth in the first half, Mulberry has not been immune to the broader downturn in luxury spending experienced in recent months, particularly in the UK and Asia. This decline was partially offset by positive trading in the US, where we have benefited from increased brand awareness.
“Looking ahead, the trading environment in the UK and China remains challenging and we do not expect this to change in the short term. We are therefore managing the business prudently, focusing on executing our strategy and vision to become a global sustainable luxury brand.”
