Breaking down the sales figures, retail sales fell 1.5 percent, although there was a slight increase of 0.6 percent at constant exchange rates. However, international retail sales showed a more positive trend, increasing by 3.9 percent (10.8 percent at constant exchange rates). By contrast, UK retail sales saw a 4 percent decline.
Mulberry Group reported an 8.4 percent decline in Q3FY24 revenue, impacted by difficult economic conditions and reduced luxury spending. Retail sales fell 1.5 percent, while international sales rose 3.9 percent. The company's UK sales fell 4 percent in the third quarter of FY24. Over 39 weeks, the company's revenue increased marginally by 0.1 percent.
For the 39-week period ending December 30, 2023, the group's revenue was slightly positive, up 0.1 percent (1.3 percent at constant exchange rate) compared to the previous year . Gross margins remained consistent with those reported in the first half of the year, the company said in its recent trading update.
Full-year results are expected to be influenced by additional operating costs associated with new store openings in Sweden and Australia, along with significant ongoing investments.
“In the run-up to Christmas, the macroeconomic environment continued to impact consumer spending in the luxury retail sector, from which Mulberry was not immune. Despite this, the group maintained its discipline and focused on a pricing strategy full against an unusually high level Promotional environment Our international sales remained positive, supported by our strategy of bringing in-house ownership of overseas stores In the UK, we continue to believe that the lack of VAT-free shopping is impacting the retail landscape, as well as the hospitality, leisure and tourism sectors,” he said Thierry Andretta, CEO.
Fiber2Fashion News Desk (DP)
