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Mulberry Returns to Growth and Narrows Losses as Turnaround Gains Traction

Improved margins from fewer promotions plus new shareholder funding give Mulberry room to pursue creative, commercial moves toward its medium-term revenue and profit targets.

Overview

  • Mulberry reported on Wednesday that group revenue for the year to March 28 rose 4% to £125.5 million while loss before tax narrowed to £8.9 million and alternative measures showed an £8.0 million shortfall.
  • The company moved back to a positive EBITDA of £0.8 million after a £16.8 million loss the prior year, driven by a gross margin increase to 71.9% that the firm attributes to fewer promotions and stronger full-price selling.
  • Early trading in the new financial year showed stepped-up momentum with group revenue up 23% for the 13 weeks to June 27 and retail and digital sales rising 18% or 21% like-for-like.
  • Mulberry strengthened its liquidity with a £20 million convertible loan from its two largest shareholders and new committed banking facilities to July 2028 while keeping tight control of operating costs.
  • Management is using refreshed product launches, a new creative team led by Christopher Kane and a planned London Fashion Week return to win back U.K. customers and aim for more than £200 million revenue and a 15% EBIT margin over the medium term.