Mulberry sales decline as wealthy shoppers slow spending

Luxury British brand expects challenging trading conditions in UK and China to continue

Mulberry, the luxury British brand best known for its leather handbags that can cost more than 1,600 each, has reported a 4% decline in annual sales, becoming the latest high-end company to warn of a slowdown in spending among the richest shoppers.

In a trading update, Thierry Andretta, the chief executive, said: While we achieved positive revenue growth in the first half, Mulberry has not been immune to the broader downturn in luxury spending experienced in recent months, particularly in the UK and Asia. This decline was partially offset by positive trading in the US, where we have benefited from increased brand awareness.