Mulberry released its full-year results for FY26 on Wednesday but there were no surprises in there as it had already delivered its pre-audit good news back in April, just after its financial year ended. But this time, the results were fully audited and — importantly — included a short round-up of what’s happened in the first quarter of FY27. And it seems the good news is continuing.
So before we look at those audited results for the year to late March, let’s see how the company has fared in Q1, which ended in late June.
It said trading in the current year “has started positively, with momentum from the second half of FY26 continuing into FY27”. The performance is in line with the board’s expectations and group revenue for the 13 weeks to 27 June is 23% higher than the same period last year.
Retail & Digital revenue was 18% higher in total and up 21% higher on a like-for-like (LFL) basis, with all regions delivering LFL double-digit growth.
Q1 UK Retail & Digital sales were 17% higher year on year and 16% higher LFL. European Retail & Digital sales were up 35%, or 33% LFL. The figures for North America Retail & Digital were 23% and 27%, respectively, while Asia Pacific Retail sales were 28% below the same period last year, but 32% higher LFL. Rest of World Retail sales were up 25%, or 31%LFL.
Franchise and Wholesale revenue was up 56% compared to the same period last year.
It all means the business is targeting annual revenue of more than £200 million and a 15% adjusted EBIT margin over the medium term.
Transformational year
Now let’s look back at those confirmed figures for FY26 and what was clearly a year of transformation for the business that had struggled for some time. Group revenue for the year was up 4% to £125.5 million with growth accelerating 11% in the second half. Retail & Digital LFL revenue increased 9%, “with momentum building throughout the year”.
The gross margin increased to 72% from 67%, “reflecting stronger full-price trading and reduced promotional activity, improving the quality of earnings, and translating into an improved bottom line”.
That said, the company still made a reported loss before tax. But it was only £8.9 million compared to £32.2 million a year ago. The underlying loss before tax of £8 million was better than £24.1 million in FY25.
The company saw positive underlying EBITDA of £0.8 million after a negative £16.8 million in FY25.
The year was one in which Mulberry ruthlessly controlled and cut costs, and CEO Andrea Baldo said that overall it was one of “meaningful progress”.
He added that “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. Indeed, the new products and brand campaigns also resonate well with new audiences internationally, with all regions delivering LFL double-digit growth in the second half of the year, and this trend continues in the first quarter of FY27”.
Product-wise, the return of the Roxanne, its first launch under the new creative team, followed by the introduction of the new leather and non-leather families and the continued reinvigoration of icons such as the Bayswater Limited Edition, “demonstrates that global customers recognise the value of exceptional British craftsmanship, creativity and timeless design”.
Baldo said there’s “still more to do, and we are, of course, mindful of the wider macroeconomic environment”.
But the brand’s return to London Fashion Week this coming September under creative chief Christopher Kane means a massive publicity boost for Mulberry. Combined with successful campaigns and a strong product pipline, the CEO said he’s “more confident than ever that we are building a business that is well positioned to deliver sustainable, profitable growth over the long term”.
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