Mulberry has reported a return to growth and a sharp reduction in losses as its turnaround strategy begins to deliver results.
Group revenue increased by 4 per cent to £125.5m in the 52 weeks to 28 March 2026, with growth accelerating to 11 per cent during the second half.
The luxury brand reduced its reported pre-tax loss to £8.9m, compared with a restated loss of £32.2m in the previous year. Its underlying pre-tax loss narrowed from £24.1m to £8m, while underlying EBITDA improved by £17.6m to a positive £0.8m.
Gross margin increased from 66.8 per cent to 71.9 per cent, helped by stronger full-price trading, reduced promotional activity and lower production costs.
Operating expenses fell by 10 per cent to £96.2m despite continued investment in marketing, brand development and digital capabilities.
Retail and digital revenue increased by 1 per cent to £110.9m, or by 9 per cent on a like-for-like basis. Store sales rose by 2 per cent, while digital revenue remained broadly level at £43.5m.
UK retail revenue was down 1 per cent but increased by 8 per cent on a like-for-like basis. European retail sales grew by 21 per cent, with like-for-like growth of 28 per cent, while US revenue increased by 6 per cent.
Asia-Pacific retail revenue fell by 6 per cent following the closure of unprofitable stores but rose by 4 per cent on a like-for-like basis.
Franchise and wholesale revenue increased by 33 per cent to £14.6m, supported by new UK partnerships with John Lewis, Liberty, Flannels and Harvey Nichols.
Mulberry closed one UK and eight international stores during the period. It also opened a new UK store and launched in two additional John Lewis locations.
More than half of the brand’s UK retail and digital sales came from returning customers. Sales through its pre-owned Mulberry Exchange operation increased by 46 per cent.
Current trading has continued to improve, with group revenue for the 13 weeks to 27 June 23 per cent ahead of the previous year. Retail and digital revenue increased by 18 per cent, or 21 per cent on a like-for-like basis, while franchise and wholesale sales rose by 56 per cent.
Andrea Baldo, chief executive of Mulberry, said: “We returned the business to growth, significantly reduced our losses and strengthened gross margin through greater full-price discipline.
“Momentum built throughout the year, with a particularly strong second half, demonstrating that the actions we have taken are delivering tangible results, including delivering positive underlying EBITDA for the year.”
He added: “There is still more to do, and we are, of course, mindful of the wider macroeconomic environment. But with a strong and committed team of colleagues, a more focused business and growing momentum behind our British lifestyle brand, I am more confident than ever that we are building a business that is well positioned to deliver sustainable, profitable growth over the long term.”
Mulberry continues to target annual revenue of more than £200m and an adjusted EBIT margin of 15 per cent over the medium term.
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