GCIMulberry sales fall amid slowdown in luxury spending
(Sharecast News) - Handbag maker Mulberry Group Plc (MUL) reported a drop in revenue on Wednesday, pinning the blame on a slowdown in luxury consumer spending, a challenging macroeconomic backdrop and a lack of VAT-free shopping.
In the 13 weeks to 30 December, group revenue fell 8.4% versus the same period a year earlier. Mulberry noted that it maintained its full-price sales approach in the run-up to Christmas.
Retail sales declined 1.5%, with international and UK retail sales down 3.9% and 4%, respectively.
Chief executive Thierry Andretta said: "In the run up to Christmas, the macro-economic environment continued to impact consumer spending in the luxury retail sector, which Mulberry was not immune from.
"Despite this, the group maintained its discipline and focus on a full price strategy against an unusually high promotional environment. Our international sales remained positive, supported by our strategy to bring in-house ownership of overseas stores. In the UK, we continue to believe the lack of VAT-free shopping is impacting the retail landscape, as well as the hospitality, leisure and tourism sectors."
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