Luxury brand Mulberry, based in the U.K., has announced a decrease in sales at the end of last year, attributing the decline to a decrease in consumer spending. According to the company's statement on Wednesday, revenue for the 13-week period ending on December 30 dropped by 8.4% compared to the same period in the previous year.

Despite a highly promotional market during the holiday season, Mulberry maintained its full-price sales approach. The company cited an unusually high promotional environment as a contributing factor to the decline in sales.

For the 39-week period leading up to December 30, revenue saw a slight increase of 0.1%. Gross margins remained consistent with those reported for the first half of the year.

Mulberry expects its full-year performance to be impacted by additional costs associated with new stores in Sweden and Australia, as well as ongoing investments. Chief Executive, Thierry Andretta, expressed that international sales have remained positive due to the company's strategy of bringing overseas stores under in-house ownership. However, in the U.K., Andretta believes that the lack of VAT-free shopping is affecting the overall retail landscape.

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