Mulberry Group plc
Year End Trading
Update
Mulberry Group plc (the "Group" or "Mulberry"),
the British sustainable luxury brand, announces a trading update
for its financial year ended 30 March 2024 ("FY24").
Against a backdrop of challenging
macro-economic conditions and a decline in luxury consumer
spending, especially in the last quarter, group revenue for FY24
declined -4% (-2.7% on CER*) versus the prior year, with gross
margins maintained around those reported for the first half of the
year. As previously highlighted, losses for the full year will be
impacted by the additional operational costs of new stores in
Sweden and Australia and ongoing important investments, including
technology, supporting future growth of the Group.
|
Retail sales
|
+0.3% (+1.9% on CER)
|
|
International retail sales
|
+7.2% (+11.8% on CER)
|
|
UK retail sales
|
-3.2%
|
*Constant
exchange rates
Retail sales were in line with the prior year,
driven by growth in Europe (which included the first full period of
ownership of our Swedish stores) and the United States due to
increased brand awareness and our direct to customer strategy. This
was offset by a decline in the UK and Asia Pacific (excluding
Australia), which continued to be challenging due to the
macro-economic climate in China and reduced footfall across the
region. The decline in franchise and wholesale sales was broadly in
line with the first half of FY24, due to wholesale arrangements
which converted to retail.
Thierry
Andretta, Chief Executive Officer, commented:
"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 benefitted 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."
FOR FURTHER DETAILS PLEASE
CONTACT:
Mulberry
Charles
Anderson
Tel: +44 (0) 20 7605 6793
Headland (Public Relations)
Lucy Legh / Joanna
Clark
Tel: +44 (0) 20 3805 4822
mulberry@headlandconsultancy.com
Houlihan Lokey Advisory Limited (Financial Adviser and
NOMAD)
Tim Richardson
Tel: +44 (0) 20 7839 3355
Peel
Hunt LLP (Corporate Broker)
George Sellar
Tel: +44 (0) 20 7418
8900