April 20 (Reuters) - British luxury handbag maker Mulberry reported a 5.7% increase in annual revenue on a constant currency basis on Monday, supported by robust second-half performance as it focused
Luxury handbag maker Mulberry returns to sales growth as turnaround accelerates
Mulberry's Financial Performance and Strategic Turnaround
April 20 (Reuters) - British luxury handbag maker Mulberry reported a return to annual sales growth on Monday as its turnaround gathered pace despite weakening consumer spending facing the wider retail sector, sending its shares up nearly 8%.
Revenue Growth and Market Performance
The company posted full-year revenue growth of 5.7% on a constant currency basis for the year ended March 28, driven by double-digit growth across all markets in the second half, with like-for-like retail and digital sales in its core UK market rising 13.7%.
Comparison with Broader Retail Sector
Mulberry's performance stands out against a backdrop of a struggling broader retail sector as cautious UK consumers increase savings amid sluggish economic growth, while demand has been slow to recover in key luxury market China. Recent fallout from the Iran war has also hit high‑margin airport retail and demand in the Gulf.
Strategic Initiatives Under New Leadership
Under CEO Andrea Baldo, the company has pursued its strategy focusing on an appeal to "British heritage" to win domestic customers as it cuts back on discounts, which helped to increase gross margin in fiscal 2026.
Leadership Changes and Market Focus
Baldo, who took over as CEO in 2024 and also planned to scale back in China, said the turnaround was firmly underway despite challenging economic and geopolitical conditions.
Product Successes and Regional Sales Growth
Targeted investments and strategy helped its Bayswater Limited Edition bag sell out within minutes in February, while the Boston bag performed strongly, driving what the company called "sustained momentum" across regions.
Notably, like-for-like retail and digital sales grew 20.1% in the United States and 37.8% in the European Union.
Reporting and Editorial Credits
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Mrigank Dhaniwala, Sherry Jacob-Phillips and Emelia Sithole-Matarise)
