British luxury handbag maker Mulberry reported a 23% rise in first-quarter sales growth on Wednesday, as new product launches kept the retailer's turnaround on track.
The sales growth built on momentum from the second half of the prior year as Chief Executive Andrea Baldo's "Back to the Mulberry Spirit" strategy gains traction, with new products like the Boston family bags helping win back customers.
“The strategic decision to prioritize brand equity over short-term volume is succeeding, reflected in stronger full-price trading, improving customer engagement and renewed momentum across the business," Chairman Christopher Roberts said in a statement.
Group revenue for the 13 weeks to June 27 rose 23%, with all regions delivering double-digit like-for-like growth, the retailer said.
Luxury brands in the UK like Mulberry and Burberry have leaned into their British heritage and craftsmanship to appeal to domestic shoppers, as the broader sector struggles with rising geopolitical tensions and living expenses dampening discretionary spending.
More than half of UK retail and digital sales came from returning customers, Mulberry noted.
For the fiscal year ended March 28, Mulberry narrowed its underlying pretax loss to £8 million ($10.70 million) from £24.1 million a year earlier, while gross margins jumped to 72% from 67% as the company reduced promotional activity and focused on full-price sales.
The company also achieved positive underlying core profit of £0.8 million for fiscal 2026, compared to a £16.8 million loss the prior year.
Mulberry maintained its medium-term target of achieving annual revenue above £200 million with a 15% adjusted operating margin.
