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(Alliance News) - Mulberry Group PLC shares edged lower on Wednesday, after it said Christmas sales were impacted by "challenging" backdrop.
Mulberry is a Bath, England-based maker of hand bags and other leather goods. Its shares were down 4.8% to 138.00 pence each in London on Wednesday afternoon.
In the 13 weeks ended December 30, revenue fell 8.4% annually.
It said revenue was "impacted by the challenging macro-economic backdrop and decline in luxury consumer spending." It added that in the run up to Christmas, it maintained its full price sales approach.
Group revenue for the 39 weeks ended December 30 was up 0.1% annually, with gross margins in line with those reported for the first half of the year.
Mulberry noted that full year results 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 company.
Chief Executive Officer 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. Despite this, the group maintained its discipline and focus on a full price strategy against an unusually high promotional environment. Our international sales remained positive, supported by our strategy to bring in-house ownership of overseas stores. 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."
By Sophie Rose, Alliance News senior reporter
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