Mulberry Group (AIM:MUL) reported revenue up 4% to £125.5m for the 52 weeks to 28 March, against £120.4m the prior year.
Growth accelerated to 11% in the second half, with Retail and Digital like-for-like revenue up 9% across the full year. Gross margin improved to 72% from 67%, reflecting stronger full-price trading and less discounting.
The reported pre-tax loss narrowed to £8.9m from £32.2m a year earlier, while the underlying pre-tax loss fell to £8m from £24.1m. Underlying EBITDA turned positive at £0.8m, versus a £16.8m loss last year, as operating expenses fell 10% to £96.2m despite continued marketing and digital investment.
"We returned the business to growth, significantly reduced our losses and strengthened gross margin through greater full-price discipline," said chief executive Andrea Baldo.
More than half of UK Retail and Digital sales came from returning customers, while the group secured new UK wholesale partnerships with John Lewis, Liberty, Flannels and Harvey Nichols.
A £20m convertible loan note from Mulberry's two largest shareholders underpinned the balance sheet, alongside new lending facilities committed until July 2028.
Trading has strengthened further into FY27: group revenue for the 13 weeks to 27 June rose 23% year-on-year, with Retail and Digital revenue up 18%, or 21% on a like-for-like basis, and all regions delivering double-digit like-for-like growth.
Mulberry said it remains focused on rebuilding gross margin and restoring profitability, targeting medium-term annual revenue above £200m at a 15% adjusted EBIT margin.
News Intelligence what this means for the company
Mulberry swung to positive underlying EBITDA (£0.8m vs. £16.8m loss prior year) and cut its pre-tax loss by 73% to £8.9m, driven by gross margin recovery to 72% from 67% and 4% revenue growth to £125.5m. Momentum has accelerated sharply into the new financial year, with group revenue up 23% in the 13 weeks to 27 June and all regions posting double-digit like-for-like growth, signalling that the turnaround under CEO Andrea Baldo is gaining traction.
The company has moved from loss-making to EBITDA-positive while rebuilding margin discipline and securing new wholesale partnerships (John Lewis, Liberty, Flannels, Harvey Nichols), materially narrowing the path to its medium-term target of £200m+ revenue at 15% adjusted EBIT margin. The £20m convertible from largest shareholders and lending facilities through July 2028 provide runway, but execution risk remains on sustaining margin gains and reaching profitability at scale.
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