Mulberry Announces Return to Sales Growth Across All Markets
Luxury handbag manufacturer Mulberry, based in Somerset, has reported a significant return to sales growth across all its markets, declaring that its business turnaround is now firmly underway. The Chilcompton-based company revealed that UK retail and online like-for-like sales increased by an impressive 13.7 percent during the final six months of the financial year, building on earlier growth of 6.5 percent in the third quarter.
Strong Performance in Second Half
Overall group comparable sales rose by 12.8 percent in the second half leading up to March 28, or 13.6 percent when currency effects are excluded. This performance represents a sharp reversal from the first half of the year, when group sales had declined by 3.2 percent on a constant currency basis. The growth was consistent across all regions and markets, indicating a broad-based recovery.
Chief Executive Andrea Baldo described the past year as "a year of decisive progress" for the company. He emphasized that despite facing a challenging economic and geopolitical environment, Mulberry has successfully delivered growth across all channels and geographies, with clear momentum evident throughout the business.
Turnaround Strategy Execution
The company initiated a comprehensive turnaround plan in late 2024, which involved difficult decisions such as cutting 85 jobs, approximately a quarter of its head office staff. To support its transformation efforts, Mulberry raised £20 million in June of last year, following a significant 21 percent slump in turnover during 2024. By November, the company had managed to reduce its losses by more than half, showcasing early signs of recovery.
Mulberry's "Back to the Mulberry Spirit" strategy has focused on moving away from discounting practices and instead concentrating on tighter, more focused product ranges while improving availability. Baldo explained that the company is simplifying its operations, restoring full price discipline, strengthening customer connections, and reasserting its position as a distinctive British lifestyle brand.
Notable Successes and Future Plans
The effectiveness of this new approach was highlighted by the rapid sell-out of the Bayswater Limited Edition bag within minutes of its launch in February. Additionally, in March, Mulberry announced the appointment of Scottish designer Christopher Kane as its new creative director. Kane will be responsible for relaunching the women's ready-to-wear collection, with the debut expected to take place at London Fashion Week in September.
The strong second-half performance has resulted in overall annual sales growth of 5.7 percent on a constant currency basis for Mulberry. This marks a significant milestone in the company's journey toward sustained profitability and market leadership in the luxury goods sector.
