British fashion firm Mulberry's Q3 FY24 revenue declines 8.4%

Breaking down the sales figures, retail sales dipped by 1.5 per cent, although there was a slight increase of 0.6 per cent on constant exchange rate. International retail sales, however, showed a more positive trend, with a 3.9 per cent increase (10.8 per cent on constant exchange rate). In contrast, UK retail sales experienced a 4 per cent decrease.

For the 39-week period ending on December 30, 2023, the group's revenue was slightly positive, with an increase of 0.1 per cent (1.3 per cent on 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.

The full-year results are expected to be influenced by additional operational costs associated with new store openings in Sweden and Australia, along with ongoing significant investments.

"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," said Thierry Andretta, chief executive officer.

Fibre2Fashion News Desk (DP)