Luxury fashion and accessories retailer Mulberry has posted a decline in sales during the full financial year as declining consumer spend on luxury goods took its toll.

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Mulberry remains “prudent” as group revenue declines

Mulberry posted a 4% decline in group revenue for the full year to March 30, 2024, which it attributed to “challenging macro-economic conditions” as well as a decline in consumer spending in the luxury sector.

Retail sales at the luxury brand for the year were up 0.3% and in line with the previous year. While international sales increased by 7.2%, sales in the UK dropped 3.2%.

The group said retail sales were driven particularly by growth in Europe and the US, and hailed its “increased brand awareness” in those geographies.

Mulberry said this was offset by a decline in both the UK and Asia Pacific, which was challenged by the macro-economic climate in China and reduced footfall in the region.

The luxury giant said that losses for the full year are expected to be hit by the additional operations costs of new stores in both Sweden and Australia, as well as “ongoing important investments” including technology to support the brand’s future growth.

Mulberry chief executive Thierry Andretta 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 benefited 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.”