Mulberry says “decline in luxury consumer spending” caused sales dip

Reflecting a dip in luxury consumer spending, British brand Mulberry has reported that its revenues declined by 4% in the fiscal year ending 30 March 2024.

The business credited this performance to "challenging macro-economic conditions" and a "decline in luxury consumer spending", especially during the last quarter.

Losses for the full year were also impacted by the additional operational costs of new stores in Sweden and Australia, as well as ongoing important investments, including technology, supporting the future growth of the group.

Overall retail sales were up by 0.3%, with international retail sales up by 7.2% but UK sales down by 3.2%. Retail sales were in line with the prior year, driven by growth in Europe. This was offset by a decline in the UK and Asia Pacific.

Thierry Andretta, CEO of Mulberry, 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."

Mulberry is one of many luxury brands facing financial turmoil after the demand for luxury has slowed in recent months.

Luxury conglomerate Kering, which owns Gucci, Saint Laurent, Bottega Veneta, and more, last month announced that its revenue stood at £3.87 million (€4.504 million) during the first quarter, down by 11% year-on-year.

The following day, it was revealed that Burberry was at risk of a takeover since losing a fifth of its value since the beginning of 2024.