Mulberry (LSE:MUL) delivered improved financial results for FY26, reporting a 4% increase in revenue to £125.5 million as its turnaround strategy gathered pace. Sales growth accelerated to 11% during the second half of the year, while like-for-like Retail & Digital revenue climbed 9%. Higher levels of full-price selling and lower promotional activity lifted gross margin to 72%, helping reduce the pre-tax loss to £8.9 million. The luxury retailer also returned to positive underlying EBITDA, supported by disciplined cost management and refinancing that secures borrowing facilities through 2028.
Brand revival drives stronger trading momentum
The company’s “Back to the Mulberry Spirit” strategy continued to reshape the business through a stronger product offering and increased customer engagement. During the year, Mulberry reintroduced popular collections including the Roxanne bag and refreshed the Bayswater range, while appointing Christopher Kane as Ready-to-Wear Creative Director to strengthen its fashion credentials.
Customer loyalty also remained a key strength, with returning shoppers accounting for more than half of UK Retail & Digital sales. The improved brand proposition has translated into stronger trading, with the first 13 weeks of FY27 delivering a 23% increase in group revenue and double-digit like-for-like sales growth across most of its core markets.
Medium-term ambitions remain intact
Management said the strong start to the new financial year reinforces confidence in delivering its medium-term objectives, despite ongoing uncertainty across the global luxury sector. The company continues to target annual revenue exceeding £200 million alongside an EBIT margin of 15%, reflecting its focus on sustainable, profitable growth.
While the broader luxury market remains challenging, Mulberry believes its investment in product innovation, customer relationships and brand positioning provides a solid platform for continued recovery.
Investment outlook
Mulberry’s investment profile remains influenced by financial challenges, including elevated leverage and the legacy of weaker trading in recent years. However, improving technical indicators point to strengthening market momentum, while the company’s operational progress and strategic initiatives provide a more constructive outlook for future performance.
About Mulberry
Mulberry Group plc is a British luxury lifestyle brand recognised for its premium leather handbags, accessories and ready-to-wear collections. The company sells through Retail, Digital, wholesale and franchise channels, with the UK remaining its largest market while continuing to expand its presence across Europe, North America and Asia-Pacific.
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