Mulberry sales decline 4 percent in FY24

In a year end trading statement, Mulberry Group said, against a backdrop of challenging macroeconomic conditions and a decline in luxury consumer spending, group revenue declined 4 percent or 2.7 percent on CER versus the prior year.

Commenting on the update, Thierry Andretta, Mulberry’s chief executive officer, 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."

Highlights of Mulberry's full year results

While gross margins were maintained around those reported for the first half of the year, the company added that losses for the full year will be impacted by the additional operational costs of new stores in Sweden and Australia and ongoing investments, including technology, supporting future growth of the group.

The company further said that retail sales were up 0.3 percent or 1.9 percent on CER, driven by growth in Europe including the first full period of ownership of Swedish stores and the United States offset by a decline in the UK and Asia Pacific excluding Australia. International retail sales rose 7.2 percent or 11.8 percent on CER, while UK retail sales were down 3.2 percent.

Mulberry forecasts challenging trading ahead

The British fashion house saw its shares drop further following the trading update. The company has witnessed its stock fall almost 60 percent since the beginning of the year.

Mulberry's woes will continue as the company forecasts challenging times ahead amid slowing demand for luxury.

"Looking ahead, the trading environment in the UK and China remains challenging and we do not expect this to change in the short term," added Andretta.