Mulberry group sales dropped 8.4% over the golden quarter, as it blamed the tourist tax for a fall in UK sales.
Total retail sales dipped 1.5% for the 13 weeks ended 30 December 2023, as UK sales fell 4% in contrast to a 3.9% increase in international sales.
Mulberry CEO 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.
“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.”
The retailer maintained its full price sales approach during the run up to Christmas despite an “unusually high promotional environment”.
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Group sales for the 39 weeks ended 30 December edged up 0.1% on the prior year.
The luxury retailer has already flagged that its full-year profits would be impacted by additional operational costs of its new stores in Sweden and Australia, as well as ongoing investments, including in technology, supporting its future growth.
Andretta added: “Looking ahead, we are continuing to execute our plans and remain confident that our investments will underpin future sustainable growth.”
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