Mulberry reports 'encouraging' first half as turnaround takes shape
Mulberry’s half-year results reveal that the British luxury brand is still loss-making, but for the first time in years, the fundamentals are finally moving in the right direction. Beneath the 4% dip in revenue and £6.9 million pre-tax loss sits the architecture of a turnaround in its early stages.
The numbers for the 26 weeks to 27 September 2025 are still firmly in the red, but beneath the headline loss sits a company that finally appears to be moving in the right direction with Andrea Baldo’s "Back to the Mulberry Spirit" strategy beginning to show its impact.
Like-for-like sales grew 4% across the UK, Europe and the US, meanwhile gross margin jumped to 69% and operating expenses fell 16%. The underlying loss has been almost halved.
Baldo’s approach hinges on a few key principles: focus on the markets where Mulberry still has cultural and commercial relevance, rebuild brand desire with clearer product offering and restore pricing integrity.
The early signs are visible in the Roxanne, the brand’s first major launch under the new creative team, which has already earned the kind of customer reaction Mulberry has been missing. The brand is also investing in cultural connection again, such as appointing Cynthia Erivo as an ambassador.
CEO Baldo said: "This has been an encouraging first half as we continue to deliver our ‘Back to the Mulberry Spirit’ strategy. We’re still early in the turnaround, but the foundations we’ve put in place are working, and we’re starting to see that reflected in performance.
"We’re strengthening our margin and improved our cash position through a greater focus on full-price sales and disciplined cost management, while our refreshed product offer and creative direction are reconnecting the brand with customers.
As Mulberry heads into the all-important festive trading period, the question is no longer whether the brand can turn itself around, but how quickly. Baldo has promised a "stronger, resilient business for the long term".
