Mulberry’s half-year report showed the retailer had slashed its losses despite a dip in revenue as it continues its turnaround plan: “Back to The Mulberry Spirit”
The luxury fashion brand posted a 4% drop in group revenue to £53.9m for the 26 weeks ended September 27, 2025, compared to £56.1m for the same period in 2024.
Despite the dip, Mulberry reported that it had more than halved its loss before tax to £6.9m, compared to £15.7m last year. Underlying loss before tax was £7.4m, which it said was driven by “stable gross profit, strong cost control, and a focus on profitable locations in core markets.”
Like-for-like sales in retail and digital dropped 2%, but both full price and off price sales in stores increased 4% in its key markets, while wholesale increased 36%.
Sales in Asia struggled during the period, down 17% which the retailers said was driven by like-for-like declines in stores as well as a reduced number of stores in line with the simplification of its structure outlined in its turnaround plan.
The strategy’s focus on full price sales had also began to pay off, with gross margin increasing from 67% to 69%, while operating expenses decreased 16% to £42.7m.
Mulberry chief executive Andrea Baldo said: “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.
“While we remain mindful of the wider trading environment, 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.”
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