Mulberry’s group sales experienced an 8.4% decrease over the recent quarter, attributing the drop to the tourist tax affecting sales in the UK.
For the 13 weeks ending 30 December 2023, total retail sales fell by 1.5%, with UK sales declining by 4% in contrast to a 3.9% rise in international sales.
CEO Thierry Andretta stated, “In the lead up to Christmas, the macro-economic environment continued to impact consumer spending in the luxury retail sector, which Mulberry was not immune from.”
Despite facing an “unusually high promotional environment,” the retailer maintained its full price sales approach during the Christmas period.
Group sales for the 39 weeks ending 30 December increased by 0.1% compared to the previous year.
The luxury retailer had already anticipated that its full-year profits would be affected by additional operational costs from new stores in Sweden and Australia, along with ongoing investments in technology to support future growth.
Andretta expressed confidence in the future, stating, “Looking ahead, we are continuing to execute our plans and remain confident that our investments will underpin future sustainable growth.”CGFloat
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