British luxury handbag manufacturer Mulberry reported an 18% increase in group sales for the 26-week period ending September 26, 2026. The company stated that this growth occurred despite a difficult macroeconomic environment and forms part of an ongoing turnaround strategy initiated early last year. Chief Executive Andrea Baldo expressed satisfaction with the results, noting that momentum has continued into the second half of the financial year.
The company launched its strategic plan in early 2025 to stabilize its finances and return to profitability. This plan focuses on restructuring the group around its products, brand identity, and customer base while maintaining control over operating costs. The recent reporting period reflects the first half of the current financial year.
Sales growth varied by region, with the United States recording a 28% increase and Europe, excluding the UK, seeing a 23% rise. In the United Kingdom, sales grew by 10%, with a 9% increase on a like-for-like basis, which measures growth in stores that have been open for at least a year. The company attributed the performance to demand for core collections and new products like the Raffia, Crochet, and Stevie bags, as well as increased brand visibility following a runway show at London Fashion Week.
For consumers and investors, the report highlights a shift toward full-price sales, suggesting that the brand is moving away from heavy discounting to drive volume. A person shopping at Mulberry would have noticed the introduction of new seasonal lines, such as the Christopher Kane collaboration, which the company credits for its recent momentum. The 9% like-for-like growth in the UK suggests that despite broader economic challenges, consumer spending at the brand's physical locations remained higher than the previous year.
The company's performance serves as a data point for the broader luxury goods market, which has faced varying demand amid global inflation. The success of the turnaround plan so far may influence how other mid-sized luxury brands approach cost management and product refocusing. Mulberry indicated it enters the second half of its financial year with a new product pipeline, though it did not specify exact release dates or future revenue targets. The next phase of the strategy will continue through the remainder of the financial year.