LONDON — Mulberry narrowed losses and returned to revenue growth for the fiscal year ending March 28 as its "Back to the Mulberry Spirit" turnaround plan began making "meaningful" progress.
Group revenue rose 4 percent to 125.5 million pounds, with growth accelerating to 11 percent in the second half. Retail and digital revenue increased 9 percent year-over-year in the period.
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The British brand downsized its reported loss before tax to 8.9 million pounds from 32.2 million pounds in the previous year. The loss before tax shrank to 8 million pounds from 24.1 million pounds, while EBITDA, or earnings before interest, taxes, depreciation and amortization, was 800,000 pounds, compared with a 16.8 million pounds loss in fiscal 2025.
Gross margin increased to 71.9 percent from 66.8 percent, helped by fewer promotions and a focus on full-price sales. Operating expenses fell 10 percent to 96.2 million pounds, even as the company continued to invest in marketing, brand and digital.
The overall improvement showed that chief executive officer Andrea Baldo's turnaround strategy is paying off. Baldo has repeatedly described it as a long-haul effort rather than a quick fix.
"A turnaround is never linear. It's a marathon, not a sprint," Baldo told WWD during a call on Wednesday, adding the brand is "delivering what we promised" while remaining cautious about the macroeconomic backdrop.
Launched in early 2025, "Back to the Mulberry Spirit" aims to simplify the business, restore commercial discipline, put creativity at the center and reconnect with existing customers rather than reposition the brand.
Baldo said the focus has been on "rediscovering" Mulberry's strengths in heritage, craftsmanship and creativity and bringing them "back to the center of every decision," from product to budgets.
One of the clearest signals is coming from Mulberry's home market, the U.K., which the brand sees as its foundation for growth.
Baldo said more than half of U.K. retail and digital sales in the period came from returning U.K. customers, suggesting the brand is winning back lapsed clients in its home market, where it has also expanded wholesale through new partnerships with John Lewis, Liberty, Flannels and Harvey Nichols.
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