Mulberry has reported a significant reduction in its annual losses alongside a return to revenue growth, reflecting progress in its ongoing turnaround strategy. The British leather goods company announced a pre-tax loss of £8.9 million for the year ending March 28, down markedly from a £32.2 million loss the previous year.

Revenues rose by 4 percent year-on-year to £125.5 million, with growth accelerating in the second half of the financial year to 11 percent. The company attributed this performance to stronger sales at full price and a deliberate reduction in promotional activity. Cost-cutting efforts also contributed, with overall expenses trimmed by roughly 10 percent despite continued investment in marketing, brand development, and digital operations.

Mulberry saw notable improvements in its UK market, where like-for-like sales increased by 8 percent, driven by a 19 percent rise in retail shop sales on a like-for-like basis. The company welcomed a resurgence of returning customers, who accounted for more than half of retail and digital sales, suggesting strengthening brand loyalty. This trend was supported by the introduction of new products and enhanced stock availability, helping Mulberry reconnect with its existing client base while maintaining appeal to new shoppers.

Chief Executive Andrea Baldo highlighted the progress made, stating that the business had returned to growth and significantly reduced its losses while improving gross margin through disciplined pricing strategies. Baldo emphasized the importance of regaining relevance in the UK market as a foundation for international expansion.

Following the announcement, Mulberry’s shares rose 2.2 percent, reaching 140 pence—their highest level in two years. The company’s results reflect a broader effort to stabilise its operations and build a sustainable platform for future growth amid challenging market conditions.