Effect of Visitor Levy on Mulberry’s Christmas Revenue

The British label observed an 8.4% decline in overall sales during the recent quarter, linking the downturn to the tourist levy impacting UK transactions.

For the 13-week period ending 30 December 2023, total retail revenue decreased by 1.5%, with domestic sales dropping by 4% in comparison to a 3.9% upturn in overseas transactions.

CEO Thierry Andretta remarked, “In the approach to Christmas, the broader economic situation continued to influence customer expenditure in the premium retail sector, an aspect that affected Mulberry as well.”

Despite dealing with an “uncommonly high promotional backdrop,” the firm adhered to its strategy of maintaining regular pricing during the festive timeframe.

Aggregate sales for the 39-week period ending 30 December registered a modest 0.1% increase from the previous year.

The high-end retailer had foreseen that its annual profits would be impacted by added operating expenses from recently opened stores in Sweden and Australia, coupled with ongoing technology investments to bolster future expansion.

Andretta conveyed optimism about the future, affirming, “Looking forward, we are actively implementing our initiatives and retaining belief in the fact that our investments will reinforce sustained future expansion.”

Image Source: ArDanMe / Shutterstock