Mulberry Group (AIM:MUL), the maker of luxury handbags, said its sales have been impacted by a decline in luxury consumer spending.
In a trading update for the 13 weeks that ended 30 December 2023, it said group revenue fell 8.4% compared to the equivalent period a year earlier, as the company maintained its full prices in the days leading up to Christmas.
Mulberry said sales were hit by the tough economic climate.
"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," said chief executive officer Thierry Andretta.
“Despite this, the group maintained its discipline and focus on a full price strategy against an unusually high promotional environment.”
Retail sales alone fell 1.5% in the period, while UK sales slumped by 4% compared to 3.9% growth in sales abroad.
Mulberry said full-year sales will be “impacted by the additional operational costs of new stores in Sweden and Australia”, as well as the cost of ongoing investments in technology and the future of the business.
Group turnover was flat for the 39 weeks to the end of December, rising by 0.1% compared to the year before, with gross margins in line with those in the first half, Mulberry said.