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Mulberry blames Tourist Tax and luxury slowdown in luxury demand for falling sales

British fashion brand Mulberry reported a 9 percent decline in sales over the recent quarter, attributing it to a slowdown in demand for luxury spending and the absence of VAT-free shopping for international tourists in the UK. UK retail sales were down by 4 percent, while total retail sales saw a 1.5 percent decrease. However, international sales managed to grow by 3.9 percent, yet the overall group revenue for the period was down by 8.4 percent. The company also mentioned the cost impact of opening new stores in Sweden and Australia and noted that upmarket shoppers scaling back their spending contributed to the sales decline, aligning with the challenges faced by fellow designer Burberry in the luxury retail sector.

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