Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Guardian - UK
The Guardian - UK
Lifestyle
Rupert Neate Wealth correspondent

Mulberry sales decline as wealthy shoppers slow spending

A Mulberry bag
Mulberry, best known for its handbags, has reported a 4% drop in annual sales. Photograph: Christian Vierig/Getty Images

Mulberry, the luxury British brand best known for its leather handbags that can cost more than £1,600 each, has reported a 4% decline in annual sales, becoming the latest high-end company to warn of a slowdown in spending among the richest shoppers.

In a trading update, Thierry Andretta, the chief executive, said: “While we achieved positive revenue growth in the first half, Mulberry has not been immune to the broader downturn in luxury spending experienced in recent months, particularly in the UK and Asia. This decline was partially offset by positive trading in the US, where we have benefited from increased brand awareness.

“Looking ahead, the trading environment in the UK and China remains challenging and we do not expect this to change in the short-term. We are therefore managing the business prudently, focusing on executing our strategy and vision to become a global sustainable luxury brand.”

The company, which was founded in 1971 by the entrepreneur Roger Saul and his mother, Joan, said international sales had increased by 7.2% but UK retail sales had dropped by 3.2% in the year to the end of March.

The share price, which has fallen by almost 60% so far this year, declined by a further 4.5% in early trading on Wednesday.

In January, Mulberry blamed the slowdown in demand for luxury spending and a lack of VAT-free shopping for a 9% decline in sales over its “golden quarter”, which included the Christmas shopping period.

“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,” Andretta said at the time. “Looking ahead, we are continuing to execute our plans and remain confident that our investments will underpin future sustainable growth.

“In the run-up to Christmas, the macroeconomic environment continued to impact consumer spending in the luxury retail sector, which Mulberry was not immune from.”

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.