Business · NEWS EXPLAINER
Mulberry first-half sales rise 18.1% as full-price strategy gains traction
US sales led the regional gains, promotions took a smaller share and the company kept its medium-term targets—but full profit details are due in November.
Mulberry reported an 18.1% increase in sales for the 26 weeks ended September 26, with US growth of 28% leading its main regions.
The luxury brand said a higher full-price mix supported gross margin, while cautioning that the full first-half result—including profitability detail—will be published on November 19.
What the 18.1% figure measures
Mulberry said total sales for the 26 weeks ended September 26 rose 18.1% at actual exchange rates and 18.2% at constant currency. The close readings indicate exchange-rate translation had little effect on the headline growth rate.
This was a trading update, not a full income statement. Sales growth does not by itself establish profit growth, cash generation or completion of the turnaround.
The US led regional growth
US sales increased 28%, while Europe excluding the UK rose 23%. UK sales grew 10%, with like-for-like sales up 9%; Asia Pacific sales increased 5%, with like-for-like growth of 24%.
Franchise and wholesale sales climbed 52% and represented 17% of total sales, up from 16% a year earlier. Mulberry linked US momentum to demand, digital trading and a broader wholesale presence.
Fewer promotions supported the strategy
The company said promotional sales, excluding markdown activity, accounted for a share of sales 300 basis points lower than a year earlier. It described stronger full-price trading and said this supported gross-margin performance.
Demand covered both long-running styles and newer products. Management also credited greater visibility from the Mulberry by Christopher Kane runway show, but the update did not quantify the show's direct sales contribution.
What remains unreported
Mulberry said trading was in line with the board's expectations and kept its medium-term targets of more than £200 million in annual revenue and a 15% adjusted EBIT margin. Those are targets, not current results.
The company is scheduled to publish full first-half results on November 19, when readers can assess revenue detail, margins, costs, cash flow and progress toward profitability. The macro environment remains challenging, management said.
