British brand Mulberry looks to Asia as Brexit takes a toll
London — Falling tourist numbers in Britain have dented sales of leather handbag maker Mulberry at the start of its financial year, even as it expands in Asian markets where luxury goods rivals have prospered. Mulberry is also exposed to the pressures on a British retail market that has led to stores at the lower end of the spectrum shutting and cutting costs. Mulberry — which has been going back to its roots as an "affordable luxury" brand with most bags priced under £1,000 — on Wednesday reported a 7% drop in like-for-like retail sales in the 10 weeks to June 2. Underlying sales in Mulberry’s home market, comparing stores that have been trading for a year or more, were down 9% in the period, compared with a 1% fall in the previous year. Shares were down over 8% late on Wednesday morning. "The UK is really challenging," CEO Thierry Andretta said, pointing to the falling number of foreign visitors — a key revenue stream for luxury firms — in what he said was traditionally a low peri...
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