British trend home Mulberry Group plc has reported a considerably diminished loss for the primary half (H1) ended September 27, 2025, with income declined 4 per cent year-over-year (YoY) to £53.9 million (~$70.61 million), however gross revenue was flat at £37.3 million (~$48.86 million) as gross margin improved to 69.2 per cent, reflecting a deliberate discount in promotional and marked-down exercise.
Retail and digital (omni-channel) income declined 8 per cent to £46.6 million, with total like-for-like Retail and Digital income down 2 per cent. Inside retail shops, each full-price and off-price like-for-like income elevated 4 per cent throughout key markets within the UK, Europe and US, with constructive momentum constructing because the second quarter.
Mulberry has narrowed its H1 loss as income dipped 4 per cent to £53.9 million (~$70.61 million) however gross margin rose to 69.2 per cent on diminished discounting.
Retail and digital income fell 8 per cent, whereas wholesale jumped 36 per cent.
Europe grew strongly, however Asia Pacific declined 17 per cent.
Prices fell 16 per cent, serving to enhance profitability.
Franchise and wholesale income rose 36 per cent to £7.3 million, pushed by new UK wholesale partnerships with John Lewis, Liberty and Harvey Nichols, consistent with the strategic emphasis on strengthening wholesale, Mulberry mentioned in a press launch.
Area-wise, UK omni-channel income fell 10 per cent to £28.1 million, with retailer gross sales down 7 per cent and digital down 16 per cent, reflecting non-profitable retailer closures and diminished on-line promotions. Off-price gross sales grew forward of full-price, supported by improved stock administration, whereas full-price shops benefitted from a brand new retail incentive scheme.
Europe omni-channel income elevated 13 per cent to £6 million, led by sturdy efficiency in Eire, which grew 25 per cent.
US omni-channel income slipped 4 per cent to £4.7 million. Retailer gross sales elevated 2 per cent, whereas digital gross sales declined 6 per cent, largely as a result of digital concessions within the US which grew 5 per cent 12 months on 12 months.
Asia Pacific omni-channel income decreased 17 per cent to £7.7 million, with digital gross sales down 6 per cent and retailer gross sales down 20 per cent. The area noticed double-digit income decline, impacted by macroeconomic situations and the closure of unprofitable shops.
The group income fell 15 per cent within the first quarter however returned to progress within the second quarter, rising 10 per cent. Retail omni-channel income was down 16 per cent in Q1 and up 1 per cent in Q2, with wholesale phasing additionally affecting the cut up.
The improved gross sales combine and tighter stock administration lifted gross margin to 69.2 per cent, conserving gross revenue flat at £37.3 million regardless of decrease income.
Working bills decreased 16 per cent to £42.7 million, reflecting the price base assessment undertaken in FY25 and continued operational self-discipline. Underlying working bills fell 13 per cent to £42.9 million, with reductions throughout employees prices, techniques and communications and depreciation.
Mulberry reported an working money influx of £0.2 million within the interval, earlier than actions in working capital. A web working capital outflow of £4.8 million, largely as a result of a £4.9 million enhance in inventories to rebuild inventory cowl on core strains, resulted in web money utilized in working actions of £4.6 million.
Web money utilized in investing actions was minimal at £0.1 million, reflecting decrease capital expenditure on property, plant, tools and intangibles. Total, money and money equivalents decreased by £1.0 million to £7.2 million at interval finish.
Web debt, excluding loans from minority shareholders, elevated to £21.6 million, comprising money of £7.2 million, financial institution borrowings of £9.5 million and a £19.3 million convertible mortgage observe. Lease liabilities diminished to £32.6 million following common funds and retailer closures.
Operationally, the group continued to optimise its retailer community, closing six loss-making shops in Asia and increasing its wholesale presence within the UK via new companions. A brand new retail incentive scheme contributed to improved retailer efficiency, with European shops growing income by 11 per cent and UK shops by 10 per cent on a like-for-like foundation, added the discharge.
“This has been an encouraging first half as we continue to deliver our ‘Back to the Mulberry Spirit’ strategy. We’re still early in the turnaround, but the foundations we’ve put in place are working, and we’re starting to see that reflected in performance,” mentioned Andrea Baldo, chief govt officer (CEO) at Mulberry Group. “We’re strengthening our margin and improved our cash position through a greater focus on full-price sales and disciplined cost management, while our refreshed product offer and creative direction are reconnecting the brand with customers. The strong response to new icons the Roxanne and Hackney shows that Mulberry’s distinctive spirit continues to resonate.”
“While we remain mindful of the wider trading environment, current momentum gives us confidence as we enter the key festive trading period. We’re focused on maintaining this progress and continuing to build a stronger, resilient business for the long term,” added Baldo.
