Mulberry Group plc (LSE:MUL) reported an 18% year-on-year increase in group sales for the 26 weeks ended 26 September 2026, with revenue growth across all geographic regions as the British luxury accessories company continued implementing its full-price sales strategy.
The company recorded like-for-like sales growth in key markets, alongside an increase in wholesale revenue. Trading was supported by demand for new and established handbag collections, while Mulberry also reported increased brand visibility following its Mulberry by Christopher Kane runway presentation at London Fashion Week.
Mulberry said it continued to limit promotional activity during the period, reducing the proportion of sales generated through discounting by 300 basis points. The approach forms part of its efforts to rebuild gross margins and increase the contribution from full-price sales.
International Markets and Wholesale Channels Contribute to Growth
The United States recorded particularly notable sales growth during the first half, supported by digital trading and the launch of Mulberry products through Bloomingdale’s Marketplace.
European operations also reported increased sales, while the Asia Pacific region achieved like-for-like growth.
Wholesale and third-party distribution channels expanded during the reporting period, accounting for 17% of total group sales. The company is developing these channels as part of its strategy to increase distribution in selected international markets.
Mulberry operates through its own retail stores, digital platforms, wholesale relationships and franchise partners, with products including its Bayswater and Lily handbag collections.
Reduced Promotional Activity Supports Margin Strategy
Mulberry continued implementing its “Back to the Mulberry Spirit” strategy, which focuses on product development, brand positioning and customer engagement.
A central element of the programme is reducing reliance on discounted sales while increasing full-price transactions. The company reported a 300-basis-point reduction in the proportion of promotional sales during the first half, consistent with its stated objective of rebuilding gross margins.
The strategy also includes developing new product collections, maintaining established handbag ranges and expanding distribution through selected retail partnerships.
Mulberry said customer engagement increased during the period, supported by product launches and marketing activity, including its London Fashion Week presentation.
Medium-Term Revenue and Profitability Targets Maintained
Mulberry continues to target annual revenue exceeding £200 million and an adjusted earnings before interest and tax (EBIT) margin of 15% over the medium term.
These objectives form part of the company’s broader plan to restore profitability through higher full-price sales, gross margin improvements and development of its international distribution network.
The group enters the second half of its financial year against what it described as a challenging macroeconomic environment.
Management identified its upcoming product pipeline, customer engagement initiatives and continued emphasis on full-price sales as priorities for the remainder of the year.
The company has not provided a specific timetable for achieving its medium-term revenue and adjusted EBIT margin targets in the supplied update.
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