Mulberry sees sales rebound in year of ‘decisive progress’

Luxury handbag maker Mulberry has declared the turnaround at the group is “firmly under way” as it returned to sales growth across all markets.

The Somerset-based group said UK retail and online like-for-like sales jumped 13.7% higher in its final six months, up from 6.5% growth in the third quarter.

Overall group comparable sales rose 12.8% in the second half to March 28, or 13.6% higher with currency effects stripped out, with growth across all regions and markets.

It marks a sharp reversal of trading fortunes, after group sales dropped 3.2% on a constant currency basis in the firm’s first half.

Chief executive Andrea Baldo said it had been “a year of decisive progress”.

He said: “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 under way.”

The company launched a turnaround of the business in late 2024, which saw 85 jobs axed – around a quarter of its head office staff.

It also raised £20 million in June last year to help bolster its transformation, after turnover slumped 21% in 2024.

In November, it was revealed the company had cut its losses by more than half.

The group’s back-to-basics strategy has seen it move away from discounting and concentrate on “tighter, more focused” 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 said.

Its new approach saw its Bayswater Limited Edition bag sell ⁠out ​within minutes of its ​launch in February, according to the group.

The firm also recently teamed up with Wicked star Cynthia Erivo for a campaign to relaunch its Roxanne bag collection.

The group’s second-half performance has left it with overall annual sales growth of 5.7% on a constant currency basis.