Mulberry Narrows Losses Amid Turnaround Strategy and Wholesale Growth

Mulberry, the luxury leathergoods brand, has reported its half-year results for the 26 weeks ending September, indicating "strong momentum" and rapid execution of its strategic plan. While the company is making significant progress in its turnaround efforts, the financial figures present a mixed picture, reflecting a business in transition.

Overall revenue for the period saw a 4% decrease, landing at £53.9 million. However, this decline masks encouraging signs within specific segments, particularly a robust 36% increase in Wholesale revenue, which directly aligns with the company's renewed strategic emphasis. Despite an overall 2% decline in like-for-like Retail & Digital revenue, the performance in Retail Stores in key markets (UK, Europe, and US) showed positive momentum, with like-for-like revenue increasing by 4% across both full-price and off-price offerings, demonstrating building strength since Q2.

Conversely, the Asia Pacific region experienced a 17% decline in revenue compared to the previous year, driven by a 14% like-for-like decline in stores and a 3% impact from store closures as part of an ongoing strategy to simplify its structural footprint. Positively, gross margin improved to 69% from 67%, primarily attributed to Mulberry's commitment to maintaining a full-price, non-discounted offering across its Retail and Digital channels. Gross profit remained flat at £37.3 million.

A significant highlight for the period was the substantial improvement in profitability. The operating loss narrowed by an impressive 63%, moving from £13.1 million a year ago to a much tighter £4.9 million. Similarly, the loss before tax improved by 56%, reaching £6.9 million. These figures include adjusting items, such as a net credit of £1 million related to the closure of five retail stores and UK head office restructuring costs. On an underlying basis, the group’s loss for the period was £7.4 million, a considerable reduction from £15.2 million last year, achieved through stable gross profit combined with effective cost base review implementations and ongoing cost control.

Mulberry's focus during the first half was firmly on executing its 'Back to The Mulberry Spirit' strategy, coupled with stringent "operational discipline to improve margins and cost control." This period saw the introduction of new products from its creative team, including the Roxanne family, alongside the continued evolution of popular lines like the Bayswater 9 to 5. The brand also engaged in impactful new marketing campaigns, featuring collaborations such as Cynthia Erivo becoming a brand ambassador in September 2025, aimed at reconnecting with both new and existing customers.

Strategic network optimisation continued with the closure of six stores in Asia and the establishment of new wholesale agreements in the UK with prestigious partners like John Lewis, Liberty, and Harvey Nichols. Looking ahead, Mulberry has confirmed that the positive trading momentum is persisting into the second half of the fiscal year, despite prevailing external headwinds and inflationary pressures affecting the luxury sector. The company is poised for the crucial festive trading period with new product launches, including the Hackney, Lennox, and Boston.

CEO Andrea Baldo commented on the results, stating, “This has been an encouraging first half as we continue to deliver our 'Back to the Mulberry Spirit' strategy. We're still early in the turnaround, but the foundations we've put in place are working, and we're starting to see that reflected in performance.” He added that the brand is “strengthening our margin and improved our cash position through a greater focus on full-price sales and disciplined cost management, while our refreshed product offer and creative direction are reconnecting the brand with customers. The strong response to new icons the Roxanne and Hackney shows that Mulberry's distinctive spirit continues to resonate.”