Mulberry cuts half-year loss by more than half

British leather goods specialist Mulberry Group plc suffered further losses in sales in the first half of the 2025/26 financial year, but was able to significantly reduce its loss.

In an interim report published on Wednesday, the company attributed the improvement in earnings to “steady strategic progress” in implementing its reform concept. The brand is “still at the beginning of the turnaround,” explained CEO Andrea Baldo in a statement. However, it is gaining “encouraging momentum” as the “Back to the Mulberry Spirit” strategy begins to take effect.

In the 26 weeks before September 27th, group sales amounted to 53.9 million British pounds (64.7 million euros), falling by four percent compared to the same period last year. The company attributed the losses to weaker market conditions and the impact of store closures in Asia.

CEO Baldo sees Mulberry on the right track

At the same time, Mulberry was able to increase its gross margin from 67 to 69 percent. The reasons for this were “a higher proportion of products sold at full price and disciplined inventory management,” according to a statement.

In addition, following a comprehensive cost analysis, operating costs fell by 16 percent to 42.7 million British pounds. The net loss attributable to shareholders, which had been 15.1 million British pounds in the same period of the previous year, was reduced by more than half to 6.6 million British pounds (7.5 million euros).

“We are strengthening our margin and improving our liquidity position by placing greater focus on full-price sales and disciplined cost management,” Baldo explained. He also highlighted the refresh of the range and the new creative direction with which the brand has strengthened the relationship with its customers. The new bag models “Roxanne” and “Hackney” enjoyed strong demand.

In its own retail sector, sales in the first half of the year amounted to 46.6 million British pounds. This means they fell by eight percent compared to the same period last year. On a comparable basis, they fell by two percent. Losses in the USA (-4 percent), Asia-Pacific (-14 percent) and Great Britain (-10 percent) could not be offset by strong growth in the other European markets (+14 percent).

However, sales in the global wholesale and franchise business rose by 36 percent to 7.3 million British pounds, which, according to the company, was particularly due to new partnerships with well-known British retailers such as John Lewis, Liberty and Harvey Nichols.

Given the latest developments, CEO Baldo is optimistic about the upcoming Christmas business. “The current momentum gives us confidence for the important pre-holiday trading period,” he explained. “We are focused on maintaining the upward trend and continuing to work to build a stronger, resilient business for the long term.”