Blab Business
Mulberry Narrows Losses, Returns to Revenue Growth as Turnaround Plan Gains Momentum
Mulberry Group PLC announced a turnaround, trimming losses and reviving revenue in its fiscal year ending 28 March 2026. The British luxury handbag maker posted a 4 % rise in group revenue to £125.5 million, with second‑half growth accelerating to 11 %. Retail and digital sales climbed 9 % year‑over‑year.
The company cut its loss before tax to £8.9 million from £32.2 million a year earlier. Loss before tax fell further to £8 million from £24.1 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) swung to a £0.8 million profit after a £16.8 million loss in FY 2025.
Gross margin improved to 71.9 % from 66.8 %, a lift driven by fewer promotions and a focus on full‑price sales. Operating expenses fell 10 % to £96.2 million, even as the firm continued to invest in marketing, brand and digital.
These results follow the launch of the “Back to the Mulberry Spirit” turnaround plan in early 2025. The plan seeks to simplify the business, restore commercial discipline, centre creativity and reconnect with existing customers rather than reposition the brand.
"We are rediscovering Mulberry’s heritage, craftsmanship and creativity and bringing them back to the centre of every decision," CEO Andrea Baldo said. She added that more than half of UK retail and digital sales during the period came from returning UK customers, signalling a win‑back of lapsed clients.
The brand has broadened its wholesale presence in the UK through new partnerships with John Lewis, Liberty, Flannels and Harvey Nichols. Baldo noted that the UK market is “much smaller than it was before the pandemic,” creating upside potential that justifies the company’s investment focus.
New product launches have reinforced the shift to full‑price. The Bayswater limited edition sold out within minutes, and the Scotchgrain range performed well. The Roxanne bag, the first major launch under the new creative team, gained momentum with a campaign featuring Cynthia Erivo.
Mulberry has also strengthened its fashion offer by appointing Christopher Kane as ready‑to‑wear creative director. Kane’s debut collection will be shown at London Fashion Week on 20 September 2026 and is expected to launch in stores and online in January 2027. Baldo said the fashion‑week return is a “huge marketing moment” aimed at younger, fashion‑forward customers.
For the first 13 weeks of FY 2027, group revenue was 23 % higher than the same period last year, with retail and digital revenue up 18 %. By region, UK retail and digital sales rose 17 %, Europe 35 %, North America 23 % and Asia Pacific 28 % lower in absolute terms but 32 % higher on a like‑for‑like basis.
Sustainability progress was highlighted. Mulberry Exchange, the brand’s resale platform, grew pre‑loved sales by 46 %. Roughly half of Exchange clients are younger shoppers new to the brand. The company reported a 23 % reduction in UK scope 1 and 2 greenhouse‑gas emissions year‑on‑year, increased sourcing of leather from accredited, responsible tanneries and maintained its living‑wage standard across the supply chain.
Internally, CFO Billie O’Connor said the company is shifting culture toward tighter financial discipline without cutting investment. She added that the new emphasis on profit rather than growth at any cost has changed how the executive team makes budgets.
Mulberry is investing in an e‑commerce re‑platforming and a customer‑relationship‑management upgrade to improve data and support future growth, and has introduced a new retail incentive scheme.
Financing has been strengthened by a £20 million convertible loan note from the two largest shareholders and new banking facilities that run to July 2028, giving the company more resources to pursue medium‑term goals.
The group targets annual revenue of more than £200 million and a 15 % EBIT margin over the medium term. To reach £200 million from £125.5 million in five years, Mulberry would need to deliver around 10 % growth per year, a level Baldo described as “midterm growth on an annual basis.”
Mulberry shares were slightly lower in early London trading, down 0.3 % at 136.60 pence, after opening at 132 pence and trading as high as 145 pence.
In summary, Mulberry’s fiscal 2026 results show a narrowing loss, improved margins and a rebound in revenue, driven by a focused turnaround plan, new product launches, a renewed fashion line and a stronger UK wholesale presence. The company is investing in digital, sustainability and financial discipline while targeting a 10 % annual growth rate to lift revenue above £200 million and achieve a 15 % EBIT margin. Upcoming actions include the launch of Christopher Kane’s ready‑to‑wear collection in January 2027, continued expansion of wholesale partners, and the rollout of the new e‑commerce platform.
The company cut its loss before tax to £8.9 million from £32.2 million a year earlier. Loss before tax fell further to £8 million from £24.1 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) swung to a £0.8 million profit after a £16.8 million loss in FY 2025.
Gross margin improved to 71.9 % from 66.8 %, a lift driven by fewer promotions and a focus on full‑price sales. Operating expenses fell 10 % to £96.2 million, even as the firm continued to invest in marketing, brand and digital.
These results follow the launch of the “Back to the Mulberry Spirit” turnaround plan in early 2025. The plan seeks to simplify the business, restore commercial discipline, centre creativity and reconnect with existing customers rather than reposition the brand.
"We are rediscovering Mulberry’s heritage, craftsmanship and creativity and bringing them back to the centre of every decision," CEO Andrea Baldo said. She added that more than half of UK retail and digital sales during the period came from returning UK customers, signalling a win‑back of lapsed clients.
The brand has broadened its wholesale presence in the UK through new partnerships with John Lewis, Liberty, Flannels and Harvey Nichols. Baldo noted that the UK market is “much smaller than it was before the pandemic,” creating upside potential that justifies the company’s investment focus.
New product launches have reinforced the shift to full‑price. The Bayswater limited edition sold out within minutes, and the Scotchgrain range performed well. The Roxanne bag, the first major launch under the new creative team, gained momentum with a campaign featuring Cynthia Erivo.
Mulberry has also strengthened its fashion offer by appointing Christopher Kane as ready‑to‑wear creative director. Kane’s debut collection will be shown at London Fashion Week on 20 September 2026 and is expected to launch in stores and online in January 2027. Baldo said the fashion‑week return is a “huge marketing moment” aimed at younger, fashion‑forward customers.
For the first 13 weeks of FY 2027, group revenue was 23 % higher than the same period last year, with retail and digital revenue up 18 %. By region, UK retail and digital sales rose 17 %, Europe 35 %, North America 23 % and Asia Pacific 28 % lower in absolute terms but 32 % higher on a like‑for‑like basis.
Sustainability progress was highlighted. Mulberry Exchange, the brand’s resale platform, grew pre‑loved sales by 46 %. Roughly half of Exchange clients are younger shoppers new to the brand. The company reported a 23 % reduction in UK scope 1 and 2 greenhouse‑gas emissions year‑on‑year, increased sourcing of leather from accredited, responsible tanneries and maintained its living‑wage standard across the supply chain.
Internally, CFO Billie O’Connor said the company is shifting culture toward tighter financial discipline without cutting investment. She added that the new emphasis on profit rather than growth at any cost has changed how the executive team makes budgets.
Mulberry is investing in an e‑commerce re‑platforming and a customer‑relationship‑management upgrade to improve data and support future growth, and has introduced a new retail incentive scheme.
Financing has been strengthened by a £20 million convertible loan note from the two largest shareholders and new banking facilities that run to July 2028, giving the company more resources to pursue medium‑term goals.
The group targets annual revenue of more than £200 million and a 15 % EBIT margin over the medium term. To reach £200 million from £125.5 million in five years, Mulberry would need to deliver around 10 % growth per year, a level Baldo described as “midterm growth on an annual basis.”
Mulberry shares were slightly lower in early London trading, down 0.3 % at 136.60 pence, after opening at 132 pence and trading as high as 145 pence.
In summary, Mulberry’s fiscal 2026 results show a narrowing loss, improved margins and a rebound in revenue, driven by a focused turnaround plan, new product launches, a renewed fashion line and a stronger UK wholesale presence. The company is investing in digital, sustainability and financial discipline while targeting a 10 % annual growth rate to lift revenue above £200 million and achieve a 15 % EBIT margin. Upcoming actions include the launch of Christopher Kane’s ready‑to‑wear collection in January 2027, continued expansion of wholesale partners, and the rollout of the new e‑commerce platform.
