Mulberry's turnaround gathers pace as losses narrow and Q1 momentum builds

Mulberry has posted narrower losses and improved margins for fiscal 2026, and followed the results with an update saying the recovery has carried into the new financial year. The British leather goods maker said trading in the 13 weeks to 27 June started positively, with momentum from the second half of fiscal 2026 continuing into the first quarter, in line with the board's expectations.

The results mark a meaningful moment for a brand that has spent several years resetting its business after a string of ownership changes and lossmaking periods. Management is targeting £200 million in sales and a 15% EBIT margin over the medium term, betting on heritage icons such as its signature bags alongside newer initiatives including a tie-up with designer Christopher Kane. The strategy leans on Mulberry's Somerset manufacturing base and British-made credentials as points of differentiation in a crowded accessible-luxury market.

The read for the wider sector is that disciplined cost control and a narrower brand focus can still work even when consumer demand for mid-tier leather goods remains patchy across Europe. Mulberry's improved EBIT trajectory suggests the turnaround plan, which has involved cutting discounting and tightening the product range, is starting to convert into margin. What to watch is whether the positive start to fiscal 2027 holds through the autumn selling season, and whether the Christopher Kane collaboration and heritage-led product push can drive full-price sell-through rather than just cost discipline.

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