Mulberry has said its turnaround strategy is gaining momentum after returning to sales growth in the second half. The luxury retailer cited stronger full-price trading, sold-out launches and a positive industry response to the appointment of Christopher Kane.
Updating on trading for the year to 29 March, the British heritage brand said sales rose 5.7 per cent on a constant currency basis, driven by a strong recovery in the second half.
That marked a significant improvement from the first half, when constant currency sales had fallen 3.2 per cent, with Mulberry saying all channels had returned to growth by the end of the year.
On a reported basis, total group sales rose five per cent for the full year, following a 3.9 per cent decline in the first half and a 12.8 per cent increase in the second.
Retail sales climbed 2.2 per cent overall, as a weaker first half was offset by a sharp rebound later in the year. Digital revenue rose 1.1 per cent for the full year, while store sales increased 2.9 per cent.
Franchise and wholesale continued to outperform, with revenue up 33.3 per cent across the year after strong growth in both halves.
Mulberry said the improved performance reflected continued progress under its “Back to Mulberry Spirit” strategy, which is focused on simplifying the business, sharpening the brand and rebuilding customer connection.
The retailer added that the strategy was gaining traction across all regions, supported by tighter control of discounting and a stronger emphasis on full-price sales, helping to improve gross margin during the year.
Regional performance was particularly strong in the second half, with like-for-like retail and digital sales up 13.7 per cent in the UK, 20.1 per cent in the US, 37.8 per cent in Europe and 20.8 per cent in Asia Pacific.
Mulberry said it had remained focused on both re-engaging existing customers and attracting new ones across retail and digital, backed by targeted investment in product, positioning and availability.
The brand also pointed to strong early demand for its refreshed offer, with its Bayswater Limited Edition selling out within minutes of launch in February.
Mulberry also said the Boston bag had performed strongly, signalling growing appetite for its updated product direction.
It added that the appointment of Christopher Kane as ready-to-wear creative director marked another important step in restoring creative momentum, as it prepares to launch new ranges in the current financial year.
Chief executive Andrea Baldo said: “It’s been a year of decisive progress. Despite a challenging economic and geopolitical environment, we have delivered growth across all channels and geographies, with clear momentum right across the business.
“We are simplifying the business, restoring full-price discipline, strengthening our connection with customers, and reasserting Mulberry’s position as a distinctive British lifestyle brand. The early results are clear: improved sales quality, stronger margins and growing engagement from both existing and new customers.”
He added that since announcing the relaunch of ready-to-wear under Kane’s leadership, Mulberry had seen strong engagement from the wider industry, including from partners such as Selfridges in the UK and The Webster in the US.
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