Mulberry full-year sales fell amid “challenging” macro-economic conditions and decline in luxury consumer spending, particularly during the last quarter.
The fashion retailer’s revenue dropped 4% compared to the previous year, for the year ended 30 March.
Mulberry’s retail sales remained in line with last year, driven by growth across Europe and the US due to increased brand awareness and its direct to customer strategy.
However, this was offset by a drop in the UK sales, which dropped 3.2%. In January, Mulberry said that the tourist tax, which removed the VAT refund that was previously given to international shoppers, had hit UK sales over the golden quarter.
Asia Pacific, excluding Australia, was also hit due to the luxury downturn in China.
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The brand highlighted that losses for the year would be hit by the additional operational costs of its new stores in Sweden and Australia, along with ongoing investments, including technology to support the group’s future growth.
Mulberry CEO Thierry Andretta 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 benefitted 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.”
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