Mulberry, a British luxury fashion brand, has disclosed an 8.4% decline in festive season revenue, attributing it to a slowdown in consumer spending on luxury items.
The 13-week period ending December 30 saw retail sales decrease by 1.5%, reflecting a 3.9% rise in international sales but a 4% decline in the UK. Despite the challenging economic environment impacting luxury retail, Mulberry maintained its focus on a full-price strategy, steering away from heavy promotions.
Thierry Andretta, Mulberry’s CEO, emphasized the impact of VAT-free shopping changes in the UK and its repercussions on the retail, hospitality, leisure, and tourism sectors.
The company’s international sales, however, remained positive, supported by its in-house ownership of overseas stores. Group revenue for the 39 weeks ended December 30 showed a modest 0.1% YoY increase, with gross margins consistent with the first half of the year.
Mulberry anticipates additional operational costs related to new stores in Sweden and Australia and ongoing technology investments that will impact full-year results. Despite the challenges, the company remains confident that its strategic investments will support sustainable future growth.