Shares in Mulberry (LON:MUL) rallied after the British luxury brand delivered a ‘strong trading performance’ for H1 despite a ‘challenging’ market backdrop. The positive update confirmed CEO Andrea Baldo’s turnaround strategy is working, showing like-for-like sales growth across all geographic regions.
Encouragingly, Mulberry generated strong full-price sales as the high-end handbag maker resisted the urge to slash prices for its desirable products.
Back to the Mulberry spirit
For the half ended 26 September 2026, the luxury handbag brand posted an 18% increase in group sales. This growth provided further proof points of the ongoing delivery of Baldo’s ‘Back to the Mulberry Spirit’ strategy.
During H1, the USA proved the standout region, with like-for-like sales up 34%. Hot on its heels was Asia Pacific, where like-for-likes rose 24%, while like-for-likes were also positive in Europe and the UK.
Franchise and wholesale demand grew particularly strongly, with the division notching up 52% sales growth.
| H1 to 26 September | Sales year-on-year | Like-for-like sales year-on-year |
| Group | +18% | |
| UK | +10% | +9% |
| USA | +28% | +34% |
| Europe (ex UK) | +23% | +21% |
| Asia Pacific | +5% | +24% |
| Franchise and Wholesale | +52% |
Source: Mulberry, H1 trading update
Mulberry’s performance was supported by strong customer demand across seasonal and core collections. New product introductions, including Raffia, Crochet, Stevie and Darley Camera Bag performed ‘particularly well’, alongside continued demand for icons such as the Bayswater and Lily.
The AIM-listed firm said its recent performance has also benefited from heightened brand visibility following the Mulberry by Christopher Kane runway show at London Fashion Week.
Product, brand and customer
‘The strength of our performance reflects the work undertaken over the past year to refocus the group around product, brand and customer, while maintaining a disciplined approach to trading and cost management,’ said Baldo.
‘The growth in full-price sales is particularly encouraging, demonstrating that our collections are resonating with customers across our key markets.’
Mulberry, where Mike Ashley’s Frasers (LON:FRAS) remains a major shareholder, is in the midst of a major turnaround launched in early 2025. Baldo’s self-help plan aims to restore profitability and grow annual sales to north of £200 million over the medium term by refocusing on Mulberry’s core heritage, craftsmanship and market discipline.
His recovery plan appears to be working and as a result, Mulberry’s shares have already rallied hard year-to-date. As such, we wouldn’t chase them here.
Remember, Mulberry remains loss-making for now. And the luxury goods market remains challenged with weakness in key growth engine China persisting. Sector leviathan LVMH (PA:MC) recently disappointed investors with a larger-than-expected Q3 sales miss.
We will learn more about the health of the luxury industry when Hermes (PA:RMS), Kering (PA:KER) and L’Oreal (PA:OR) report Q3 results on 22 October.
