Mulberry delivered its half-year results on Wednesday and the luxury leathergoods business said the 26 weeks to the end of September showed “strong momentum” with the company executing its strategy “at pace”.

Not that this means its numbers were all positive. In fact its revenue fell 4% to £53.9 million but with a strong reaction from Wholesale (+36%) “aligned to the strategic emphasis”.

Overall like-for-like Retail & Digital revenue declined 2%, but in Retail Stores, both full-price and off-price, like-for-like revenue increased 4% in the key markets (UK, Europe and US), with positive momentum building since Q2.

Asia Pacific revenue was down 17% versus last year, driven by like-for-like declines in stores (-14%) and store closures (-3%) as the strategy of structure simplification continued.

The gross margin increased to 69% from 67% by it maintaining a full price, non-discounted offering in Retail and Digital.  

Meanwhile, gross profit was only flat at £37.3 million. That said, the operating loss improved by 63% going from £13.1 million a year ago to a much narrower loss of £4.9 million this time. And the loss before tax also narrowed by 56% hitting £6.9 million in the latest period. That includes adjusting items of a net credit of £1 million for the closure of five retail stores and UK head office restructuring costs.

That was all on a reported basis. The group’s underlying loss for the period of £7.4 million was smaller than the £15.2 million of a year earlier and “was delivered through stable gross profit, enhanced by the results of the review of the operating cost base in implemented in FY25 and continuing cost control”.

Trading was in line with the board’s expectations and the focus during the period was on executing the ‘Back to The Mulberry Spirit’ strategy previously outlined, and on “operational discipline to improve margins and cost control”.

New products

The half saw the first product launch under the new creative team with the Roxanne family and continued evolution of key families including the Bayswater 9 to 5. It also saw strong engagement with new marketing campaigns to connect with new and existing customers, including Cynthia Erivo as a brand ambassador in September 2025.

The optimisation of the store network including closure of six stores in Asia, and new wholesale agreements in the UK with John Lewis, Liberty and Harvey Nichols.

The company also said the positive trading momentum is continuing in H2, despite ongoing external headwinds and inflationary pressures for the sector.

The second half also sees the launch of new products — the Hackney, the Lennox and the Boston — and the company is “well set for the key festive trading period”.

CEO Andrea Baldo said that “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.

“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. The strong response to new icons the Roxanne and Hackney shows that Mulberry’s distinctive spirit continues to resonate”.