Luxury handbag maker Mulberry has announced a robust recovery in sales, signaling that its strategic turnaround is gaining significant momentum. The Somerset-based brand revealed that UK retail and online like-for-like sales surged 13.7% in the final six months, up from 6.5% growth reported in the third quarter.
Overall, the group saw comparable sales rise by 12.8% in the half-year period ending March 28. When adjusting for currency fluctuations, the growth lifts to 13.6%, with increases reported across all regions and markets. This rebound marks a strong reversal after a 3.2% decline in constant currency sales during the first half of the year.
Chief Executive Andrea Baldo described the period as “a year of decisive progress.” Despite challenging economic and geopolitical conditions, Mulberry achieved growth across all sales channels and geographies, attributing this success to the disciplined execution of its “Back to the Mulberry Spirit” strategy.
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This strategy, initiated in late 2024, involved significant restructuring, including the elimination of 85 positions, roughly a quarter of its head office staff. In June last year, Mulberry secured £20 million to support its transformation following a 21% revenue drop in 2024.
The company has notably reduced its losses by more than half since then. Central to its turnaround is a back-to-basics approach focusing on reduced discounting, tighter product ranges, and 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,” Mr. Baldo stated.
The impact of this strategy was evident with the Bayswater Limited Edition bag selling out within minutes of its February launch. Additionally, the brand recently collaborated with renowned actress Cynthia Erivo to relaunch its Roxanne bag collection, further enhancing its visibility.
Mulberry’s strong performance in the second half of the fiscal year has resulted in an overall annual sales growth of 5.7% on a constant currency basis, underscoring the effectiveness of its ongoing transformation efforts.