Mulberry returns to sales growth as turnaround takes effect

The luxury brand delivered a 5% increase in group revenue for the 52 weeks to March 28, with a 12.8% jump in the second half offsetting a 3.9% decline in the first.

Digital and store sales edged up 1.1% and 2.9% for the period, respectively, boosted by 9.2% and 12.5% surges in the latter part of the year.

Mulberry’s retail/omnichannel revenue was up 2.2% for the year, aided by a 11.1% uptick in the second half compared to an 8.1% decline in the first.

The brand reported positive like-for-likes in the second half, with retail and digital sales in the UK up 13.7% and 20.1% in the US. Asia Pacific increased 20.8% in the period and the EU rose 37.8%.

Mulberry attributed the strong performance during H2 to the continued execution of its Back to Mulberry Spirit strategy, which is focused on simplifying the business, reigniting the brand and strengthening customer connection.

It said this was achieved alongside a disciplined focus on full-price sales and a reduction in discounting, which improved gross margins for the year.

The brand added that targeted investment has strengthened its positioning as a British lifestyle brand with a tighter, more focused product offer and improved availability.

Mulberry chief executive Andrea Baldo said: “This has been a year of decisive progress. Despite a challenging economic and geopolitical environment, we have delivered growth across all channels and geographies, with clear momentum right across the business.

“This performance reflects the disciplined execution of our Back to the Mulberry Spirit strategy, and demonstrates that our turnaround is firmly underway.

“We are simplifying the business, restoring full price discipline, strengthening our connection with customers, and reasserting Mulberry’s position as a distinctive British lifestyle brand. 

“The early results are clear: improved sales quality, stronger margins and growing engagement from both existing and new customers.

“At the same time, we are reigniting creativity and since announcing the relaunch of ready-to-wear under Christopher Kane’s leadership. We have seen a remarkable engagement from the industry as a whole, including leading partners ranging from Selfridges in the UK and The Webster in the US [and] a growing number of other prestigious doors.

“While we remain focused on the work ahead, we are building momentum at pace. We are confident in our strategy and in our ability to build a sustainable, profitable business for the long term.”