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%.
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%.
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 theIran war has also hit high‑margin airport retail and demand in the Gulf.
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.
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.
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.