Mulberry narrows annual losses following strategic turnaround

UK lifestyle brand Mulberry Group plc (Mulberry) has announced its audited financial results for the 52 weeks ended March 28, 2026. The London-based company returned to top-line growth, with group revenue increasing by 4 percent to 125.50 million pounds (167.95 million dollars) compared to 120.40 million pounds in the previous financial year. Sales acceleration picked up substantially in the second half of the year, delivering 11 percent revenue growth.

Retail and digital like-for-like (LFL) revenue increased by 9 percent across the 52-week period. Gross margin improved to 72 percent from 67 percent in the prior year, driven by stronger full-price discipline and reduced promotional activity. Operational expenses fell by 10 percent to 96.20 million pounds from 107.40 million pounds due to strict cost management.

Full price focus boosts margins and revenue

The company narrowed its reported loss before tax to 8.90 million pounds, marking a significant reduction from a loss before tax of 32.20 million pounds in the prior period. On an underlying basis, loss before tax improved by 16.10 million pounds to 8 million pounds. The group also achieved a positive underlying EBITDA of 0.80 million pounds, compared to an underlying EBITDA loss of 16.80 million pounds previously.

Chief executive officer Andrea Baldo stated: “Back in January 2025 I set out my immediate priorities to restore profitability, rebuild gross margin and invest in brand building initiatives, and I am pleased with the progress we have made against those objectives.” Baldo added that more than half of UK retail and digital sales came from returning customers, demonstrating progress in regaining relevance in its home market.

The financial position of the brand was supported by a 20 million pounds convertible loan note issued to key shareholders, alongside refinanced banking facilities committed until July 31, 2028. Pre-loved product sales through the 'Mulberry Exchange' circular initiative grew by 46 percent during the financial period.

Creative leadership and wholesale expansion support growth

To support product evolution, Mulberry appointed Christopher Kane as ready-to-wear creative director to expand the brand across adjacent product categories. The company also expanded its wholesale presence in the UK through partnership developments with John Lewis, Liberty, Flannels, and Harvey Nichols.

Trading in the first quarter of the new financial year, covering the 13 weeks to June 27, 2026, demonstrated continuing momentum. Total group revenue for the quarter increased by 23 percent compared to the same period in the prior year. Retail and digital sales rose 18 percent, or 21 percent on an LFL basis, with all regions registering double-digit LFL growth.

Strong first quarter momentum continues into new financial year

In regional channels for the first quarter, UK retail and digital sales rose 17 percent and Europe grew 35 percent. North America recorded a 23 percent increase, while Asia Pacific retail sales fell 28 percent on a reported basis but rose 32 percent on an LFL basis. Wholesale and franchise revenue grew by 56 percent during the 13-week period.

Chairman Christopher Roberts noted that the strategic decision to prioritise brand equity over short-term volume is succeeding. Management reiterated its medium-term financial targets of achieving over 200 million pounds in annual revenue alongside a 15 percent adjusted EBIT margin.