Mulberry Faces Sales Dip as Luxury Spending Slows

Last Updated: June 12, 2024By

Mulberry Faces Sales Dip as Luxury Spending Slows

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Hey there! Let’s chat about something that’s been buzzing in the luxury world lately. You know Mulberry, right? The fancy British brand famous for its gorgeous leather handbags that can set you back over £1,600? Well, they’ve hit a bit of a rough patch. Their annual sales have dropped by 4%, which is a big deal for a high-end brand. It’s part of a larger trend where even the wealthiest shoppers are tightening their belts a bit.

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What’s Going On?

So, Thierry Andretta, the big boss at Mulberry, recently shared some updates. He said, “We did see some good growth in the first half of the year, but lately, luxury spending has slowed down, especially in the UK and Asia. Luckily, our sales in the US have been pretty strong, thanks to more people getting to know our brand.”

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Andretta also mentioned that things are still pretty tough in the UK and China, and they don’t expect it to get better anytime soon. Because of this, Mulberry is being super careful with how they run things, focusing on their long-term goal of becoming a global, sustainable luxury brand.

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A Bit of History

Did you know Mulberry started way back in 1971? It was founded by Roger Saul and his mom, Joan. They’ve come a long way since then! Over the past year, international sales have actually gone up by 7.2%. But, sadly, UK retail sales have dipped by 3.2%.

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The Numbers Game

Mulberry’s share price has taken quite a hit this year, dropping nearly 60%. And just this past Wednesday, it fell another 4.5% in early trading. Ouch!

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Back in January, they pointed fingers at a drop in luxury spending and the lack of VAT-free shopping for a 9% decline in sales during their “golden quarter” (that’s the Christmas shopping period for those who don’t speak business lingo).

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Looking Ahead

Andretta had some thoughts on this, saying, “In the UK, we think the lack of VAT-free shopping is hurting not just retail, but also hospitality, leisure, and tourism.” But despite these challenges, he’s optimistic. They’re sticking to their plans and believe their investments will lead to future growth.

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Final Thoughts

As Christmas approached, the tough economic climate continued to hit consumer spending in the luxury sector, and Mulberry felt the impact. It’s a tricky time for luxury brands, but with careful planning and a bit of luck, Mulberry hopes to bounce back and keep delighting us with their beautiful bags.

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Thanks for sticking around to chat about Mulberry’s ups and downs. It’s a wild ride in the world of luxury, and it’ll be interesting to see how things play out!

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There you go! That’s the scoop on Mulberry. If you’ve got any thoughts or just want to talk more about luxury brands, feel free to reach out!

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