Mulberry sales fall amid slowdown in luxury spending

Handbag maker Mulberry reported a drop in revenue on Wednesday, pinning the blame on a slowdown in luxury consumer spending, a challenging macroeconomic backdrop and a lack of VAT-free shopping.

In the 13 weeks to 30 December, group revenue fell 8.4% versus the same period a year earlier. Mulberry noted that it maintained its full-price sales approach in the run-up to Christmas.

Retail sales declined 1.5%, with international and UK retail sales down 3.9% and 4%, respectively.

Chief executive Thierry Andretta said: "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."