Mulberry Group (AIM:MUL) reported a sharp reduction in annual losses and a return to revenue growth as its turnaround strategy gained traction, with trading accelerating into the new financial year.
The British leather goods maker posted revenue of £125.5 million for the 52 weeks to 28 March, up 4% from £120.4 million a year earlier, with growth accelerating to 11% in the second half.
Pre-tax losses narrowed to £8.9 million from £32.2 million and there was a swing to positive earnings (EBITDA) at £0.8 million compared with a £16.8 million loss a year earlier.
Gross margins improved to 72% from 67% as the group relied less on discounting, while operating expenses fell 10% to £96.2 million despite continued investment in marketing and digital capabilities.
Chief executive Andrea Baldo said the results showed the group's "Back to the Mulberry Spirit" strategy was delivering, citing improved profitability, stronger gross margins and renewed engagement from customers.
He said he was most encouraged by the response from UK customers: "More than half of our retail and digital sales came from returning customers, demonstrating that we are winning back former clients who already know and love the Mulberry brand and the importance of regaining relevance in our home market in order to grow internationally."
The company said momentum has continued into the 2027 financial year, with revenue up 23% in the 13 weeks to 27 June, with retail and digital sales up 18% and like-for-like growth of 21%. Franchise and wholesale revenue increased 56%.
This performance remains in line with board expectations, where the target is annual revenue above £200 million and a 15% adjusted EBIT margin over the medium term.
The business also strengthened its balance sheet during the year through a £20 million convertible loan note investment from its two largest shareholders and secured committed financing until July 2028.
