Mulberry Group reports early turnaround momentum in H1

Mulberry Group plc reported steady strategic progress in the first half of its financial year, with CEO Andrea Baldo saying the British luxury brand is “still early in the turnaround,” but gaining encouraging momentum as its “Back to the Mulberry Spirit” strategy begins to take hold.

For the 26 weeks ended 27 September 2025, Group revenue declined 4 percent to 53.9 million pounds, reflecting softer market conditions and the impact of store closures in Asia, but gross margin improved to 69 percent from 67 percent due to a stronger full-price sales mix and disciplined inventory management. Operating expenses fell 16 percent to 42.7 million pounds following a comprehensive cost review, helping the company more than halve its reported loss before tax to 6.9 million pounds from 15.7 million pounds a year earlier.

“We’re 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,” said Baldo, highlighting strong demand for new icons such as the Roxanne and Hackney.

Mulberry reports mixed regional trend

Mulberry's overall like-for-like retail and digital revenue dipped 2 percent, however, performance in physical retail stores was notably stronger: across the UK, Europe and the USA, like-for-like store revenue rose 4 percent in both full price and off price channels, supported by improving momentum through the second quarter.

In the UK, retail sales fell 10 percent to 28.1 million pounds as store sales declined 7 percent and digital revenue dropped 16 percent, reflecting the closure of non-profitable stores and reduced online promotional activity.

Europe delivered the strongest regional performance, with retail sales rising 13 percent to 6 million pounds, driven by a 25 percent surge in Ireland—owing to a full half year of Brown Thomas trading—and continued growth across Mulberry’s European digital platform.

In the USA, retail sales dipped 4 percent to 4.7 million pounds, though store sales increased 2 percent; the decline in digital, down 6 percent, was principally due to weaker digital concession performance, while Mulberry.com grew 5 percent year on year.

Asia Pacific remained the most challenged region, with retail sales down 17 percent to 7.7 million pounds as digital fell 6 percent and store sales dropped 20 percent, reflecting difficult economic conditions and the strategic closure of unprofitable locations.

The period also saw franchise and wholesale revenue rise sharply by 36 percent to 7.3 million pounds , supported by new UK wholesale partnerships with John Lewis, Liberty and Harvey Nichols—an area aligned with Mulberry’s strategic emphasis on expanding profitable distribution channels.

Strategic developments during the first half

The company also continued to simplify its Asia Pacific structure, closing six stores, while wholesale revenue surged 36 percent with new agreements secured at John Lewis, Liberty and Harvey Nichols. Mulberry invested in brand revitalisation during the period, including the appointment of Cynthia Erivo as a global ambassador, enhancements to its senior leadership team, and a new retail incentive scheme that helped drive 11 percent revenue growth in European stores and 10 percent in the UK. The brand also expanded its circular business model, reporting a 46 percent rise in pre-loved sales.

Despite ongoing macroeconomic headwinds, Mulberry said positive trading momentum has continued into the current quarter, with Baldo noting growing confidence ahead of the key festive season: “Current momentum gives us confidence as we enter the key festive trading period. We’re focused on maintaining this progress and continuing to build a stronger, resilient business for the long term.”

The Group reaffirmed its strategic focus on margin enhancement, simplified operations and profitable growth, supported by the 20 million pounds fundraising completed earlier this year to rebuild core stock, enhance marketing, and upgrade digital capabilities.