The writing was on the wall when LVMH and Gucci owner Kering sounded the alarm last month. Now the downturn in the luxury market has hit closer to home.
Mulberry Group Plc's (AIM:MUL) shares dropped following a trading update from the luxury handbag manufacturer, which indicated that its full-year profits would suffer due to a downturn in consumer spending.
The Somerset-based company highlighted a 4% decline in group revenue amid tough macroeconomic conditions and a noticeable fall in luxury consumer demand, particularly in the final quarter.
The company attributed its anticipated losses to several factors including the operational costs associated with new stores in Sweden and Australia, as well as ongoing investments in technology aimed at supporting future growth. Internationally, sales up just over 7%, with UK sales down by 3.2%.
Mulberry stock was off 2.3% in early trading.
-- Updated to update international sales --