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

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Mulberry Group Plc, a leading British sustainable luxury brand, has reported an 8.4 per cent (6.6 per cent on constant exchange rate) decline in revenue for the third quarter for fiscal 2024. This downturn reflects the challenging macro-economic environment and a decrease in luxury consumer spending. Despite the overall revenue drop, Mulberry continued its strategy of maintaining full-price sales, especially in the run-up to Christmas.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.Mulberry Group reported an 8.4 per cent decline in Q3 FY24 revenue, impacted by tough economic conditions and reduced luxury spending.
Retail sales fell 1.5 per cent, while international sales increased 3.9 per cent.
The company’s UK sales dropped 4 per cent in Q3 FY24.
Over 39 weeks, the company’s revenue increased marginally by 0.1 per cent.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)

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