Mulberry has reported a sharp reduction in losses and accelerating sales as its turnaround strategy gains momentum. The Somerset-based luxury handbag maker posted a pre-tax loss of £8.9 million for the year to March 28, down from £32.2 million the previous year, while revenues rose 4% to £125.5 million.
Turnaround Strategy Drives Improvement
The Chilcompton-headquartered brand launched a major turnaround plan early last year to shore up finances and return to profit. The strategy has focused on increasing full-price sales, reducing promotional activity, and cutting costs. Mulberry said profitability improved through greater full-price discipline, with a 10% reduction in costs despite increased investment in marketing, brand, and digital operations.
Sales growth accelerated in the second half, with an 11% rise compared to the first half. In the UK, like-for-like sales increased 8%, driven by a 19% like-for-like jump in retail shops. The company attracted new customers as new products landed and resonated, while improvements in stock availability also contributed.
CEO Highlights Customer Response
Andrea Baldo, chief executive of Mulberry, said: “We returned the business to growth, significantly reduced our losses and strengthened gross margin through greater full-price discipline. What encourages me most is the response from UK customers. More than half of our retail and digital sales came from returning customers, demonstrating that we are winning back former clients who already know and love the Mulberry brand and the importance of regaining relevance in our home market in order to grow internationally.”
Shares in the London-listed firm rose 2.2% to 140p on Wednesday, reaching their highest level in two years.
