REG - Mulberry Group PLC - Year End Trading Update

MulberryAnnouncement

01/05/2024 07:00

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RNS Number : 7066M  Mulberry Group PLC  01 May 2024

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

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