Mulberry Declares Turnaround 'Firmly Under Way' with Strong Sales Rebound
Luxury handbag manufacturer Mulberry has announced a significant resurgence in sales, describing its corporate turnaround as "firmly under way" following a period of strategic restructuring. The Somerset-based group revealed that UK retail and online like-for-like sales soared by an impressive 13.7% during the final six months of its financial year, a notable acceleration from the 6.5% growth recorded in the third quarter.
Comprehensive Growth Across All Markets
Overall group comparable sales increased by 12.8% in the second half, ending on March 28, or 13.6% when adjusted for currency effects. This performance represents a dramatic reversal from the first half, where group sales had declined by 3.2% on a constant currency basis. The company reported growth across all regions and markets, indicating a broad-based recovery.
Chief Executive Andrea Baldo characterised the period as "a year of decisive progress", emphasising that the firm achieved growth in every channel and geography despite facing a challenging economic and geopolitical landscape. "This performance reflects the disciplined execution of our 'Back to the Mulberry Spirit' strategy, and demonstrates that our turnaround is firmly under way," Baldo stated.
Strategic Restructuring and Financial Bolstering
The turnaround initiative, launched in late 2024, involved substantial operational changes, including the elimination of 85 jobs—approximately a quarter of its head office staff. To support this transformation, Mulberry raised £20 million in June of the previous year, following a 21% slump in turnover during 2024. By November, the company had successfully reduced its losses by more than half, signalling improving financial health.
The group's back-to-basics strategy has focused on moving away from discounting practices and concentrating on "tighter, more focused" product ranges with improved availability. "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," Baldo explained.
Product Success and Celebrity Collaborations
This refined approach has yielded tangible results, with the Bayswater Limited Edition bag selling out within minutes of its launch in February. Additionally, the firm recently partnered with Wicked star Cynthia Erivo for a campaign to relaunch its Roxanne bag collection, enhancing brand visibility and consumer engagement.
The robust second-half performance has culminated in overall annual sales growth of 5.7% on a constant currency basis, underscoring the effectiveness of Mulberry's strategic pivot and positioning the company for sustained recovery in the competitive luxury goods market.
