Group revenue increased 4% year-on-year to £125.5 million (US$167.89 million), driven by a particularly strong second half, when sales rose 11% following the company’s brand repositioning. Gross margin improved from 67% to 72%, reflecting stronger full-price trading, reduced promotional activity and tighter inventory management. Meanwhile, the group’s loss before tax narrowed significantly from £32.2 million (US$43.08 million) to £8.9 million (US$11.91 million), while operating expenses fell 10% to £96.2 million (US$128.69 million) despite continued investment in marketing, brand building and digital capabilities.
Retail revenue increased 1% to £110.9 million (US$148.36 million), with physical stores outperforming digital channels. Franchise and wholesale revenue rose 33% to £14.6 million (US$19.53 million), supported by expanded international partnerships. Regionally, Europe recorded 21% revenue growth, the U.S. increased 6%, while Asia Pacific declined 6% following earlier restructuring.
Operationally, Mulberry strengthened its product offering with the return of the Roxanne bag, the launch of the Boston family and further development of the Bayswater range. The company also appointed Christopher Kane as Ready-to-Wear Creative Director, expanded wholesale partnerships with John Lewis, Liberty, Flannels and Harvey Nichols, and reported that more than half of UK retail and digital sales came from returning customers. Its resale platform, The Mulberry Exchange, also continued to build momentum.
Cash flow also improved during the year, supported by stronger trading performance and disciplined investment. The group said it maintained positive liquidity through a £20 million (US$26.75 million) convertible loan note and supplier financing arrangements, while continuing to focus on inventory management and rebuilding product availability.
Outlook for leather luxury
Andrea Baldo, CEO of Mulberry, said: “FY26 has been a year of meaningful progress as we continue to deliver our Back to the Mulberry Spirit strategy. Back in January 2025 I set out my immediate priorities to restore profitability, rebuild gross margin and invest in brand building initiatives, and I am pleased with the progress we have made against those objectives.”
Looking ahead, Mulberry reported that trading has continued to strengthen in the first quarter of FY27. Revenue for the 13 weeks to June 27 was 23% higher than the same period last year, with retail and digital sales up 18% and all regions delivering double-digit like-for-like growth. The company remains focused on rebuilding profitability while targeting annual revenues of more than £200 million (US$267.55 million) and a 15% adjusted EBIT margin over the medium term.
