Renowned British luxury brand celebrated for its exquisite handbags, Mulberry reported a 4 per cent dip in annual sales during FY24, echoing the concerns of other upscale retailers about a slowdown in affluent consumer spending.
Thierry Andretta, CEO, acknowledged the broader challenges facing luxury markets, particularly in the UK and Asia, where Mulberry felt the pinch. However, the company reported a sales boost in the US market, where increased brand recognition contributed to positive trading.
Despite a 7.2 per cent boost in international sales, the UK market experienced a 3.2 percent downturn in retail sales for the fiscal year ending in March. Reflecting on the hurdles faced, Andretta highlighted the absence of VAT-free shopping in the UK, attributing it to impacting not just retail but also hospitality, leisure, and tourism sectors. This setback was evident in the ‘golden quarter,’ encompassing the crucial Christmas shopping period, where Mulberry saw a 9 per cent sales decline.
Despite these challenges, Mulberry remains committed to its vision of global sustainable luxury. Founded in 1971 by Roger Saul and Joan Saul, the brand maintains its resilience amidst the turbulent market conditions, focusing on strategic execution to secure future growth.
