Mulberry Group's FY26 Trading Update Shows Strong H2 Momentum and Strategic Progress

Mulberry FY26 trading update: sharp H2 upswing and strategy gaining traction

Mulberry’s FY26 trading update shows the brand pulling out of a sluggish first half and finishing the year with real momentum. On a constant currency basis, Group sales rose 13.6% in H2, delivering 5.7% growth for the full year to 28 March 2026. On reported currency, that equates to +12.8% in H2 and +5.0% for FY26.

The driver is clear: tighter full-price discipline, fewer markdowns, and a cleaner product and brand story under the ‘Back to Mulberry Spirit’ strategy. Every region posted positive like-for-like growth in H2 – a strong signal the turnaround is landing with customers.

Key numbers at a glance

Channel/Measure	H1 YoY (reported)	H2 YoY (reported)	FY26 YoY (reported)
Digital	(9.9%)	+9.2%	+1.1%
Stores	(7.0%)	+12.5%	+2.9%
Retail (omni-channel)	(8.1%)	+11.1%	+2.2%
Franchise and Wholesale	+35.5%	+31.2%	+33.3%
Total Group	(3.9%)	+12.8%	+5.0%
Total Group (constant currency)	(3.2%)	+13.6%	+5.7%

Regional like-for-like growth in H2: broad-based and punchy

Like-for-like (LFL) sales – a measure that strips out new store openings and closures to show underlying growth – accelerated across the board in H2:

• UK retail and digital: +13.7%
• US retail and digital: +20.1%
• EU (ex-UK) retail and digital: +37.8%
• Asia Pacific retail and digital: +20.8%

That EU number in particular jumps off the page, but 20%+ in the US and Asia Pacific is also impressive. It tells us the brand refresh is resonating internationally, not just at home.

What powered the rebound: fewer discounts, tighter product, louder brand

Management highlights a disciplined push towards full-price sales and less discounting, supporting an improved gross margin for FY26 (no figure disclosed). The revamped product direction is getting traction: the Bayswater Limited Edition sold out within minutes of launch in February, the Boston bag is performing strongly, and the ‘Rooted in Craft’ campaign has lifted visibility and awareness.

Mulberry is also turning the creative dial back up. Christopher Kane has been appointed Ready-to-Wear Creative Director, with new ranges due in the current financial year. Early industry engagement is flagged, including partners such as Selfridges in the UK and The Webster in the US.

Why this matters for investors

• Quality of sales improving – Full-price discipline typically means healthier gross margins and cleaner stock. Management explicitly says FY26 gross margin improved, which is the right side of the trade in a tough market.
• H2 momentum is broad – Every region posted positive LFL growth in H2, led by the EU at +37.8%. This is not a single-market recovery.
• Wholesale strength provides leverage – Franchise and Wholesale grew +31.2% in H2 and +33.3% for FY26. That can scale reach quickly, though it can be more volatile and lower margin than direct retail.
• Brand heat returning – Rapid sell-through on limited product and a tighter offer suggest the brand story is connecting. That underpins pricing power.

A few watch-outs

• Profit and cash not disclosed – We have no data on operating profit, EBITDA, cash, net debt or inventory. We also do not have a quantified gross margin.
• Retail recovery still young – Retail (omni-channel) was down (8.1%) in H1, then +11.1% in H2 to finish FY26 at +2.2%. Directionally good, but the annual picture is modest.
• Currency still a factor – Constant currency growth for the Group was +5.7% versus +5.0% reported, implying FX headwinds. That could persist.
• Ready-to-Wear ramp – Expanding creative scope can lift brand equity, but it usually brings investment. No cost detail or margin impact is disclosed.

Strategy check: ‘Back to Mulberry Spirit’ looks like the right playbook

The plan is straightforward: simplify the business, reignite the brand, tighten product, and strengthen customer connection. The H2 data says it is working. Digital moved from (9.9%) in H1 to +9.2% in H2; Stores from (7.0%) to +12.5%. That is the classic signature of a brand getting back on the front foot.

Like-for-like gains in every region while cutting discounting is hard to pull off. It suggests better product-market fit and more effective marketing, rather than just promotional overdrive.

Jargon buster

• Like-for-like (LFL): Underlying sales growth from comparable stores and digital, excluding new openings/closures.
• Constant currency: Strips out foreign exchange movements to show operational growth.
• Full-price discipline: Prioritising selling at ticket price rather than discounting, usually lifting gross margins.

What I want next from results day

• Full P&L detail – gross margin percentage, operating profit, and any exceptional items.
• Cash flow and inventory – how much cash the turnaround is generating and whether stock levels are tighter.
• Store footprint plans – any closures, refurbishments, or new openings by region.
• Guidance – outlook for FY27 on sales, margin, and capex, plus colour on Ready-to-Wear economics.

My take: momentum is real, proof now shifts to profit

This is an encouraging update. H2 growth was double-digit across channels and geographies, with clear signs of healthier sales quality. Wholesale provided a strong tailwind, while retail and digital swung from negative in H1 to robustly positive in H2.

The missing piece is profitability and cash. If the improved gross margin is translating into operating leverage, the turnaround case strengthens. Until we see the full numbers, treat this as solid strategic progress with promising early financial signals – not mission accomplished.

Bottom line

Mulberry exits FY26 with broad-based H2 momentum and a tighter, more premium stance. Constant currency growth of 13.6% in H2 and 5.7% for the year, plus positive LFLs in every market, show the strategy is gaining traction. Now the focus turns to margins, cash, and how the Ready-to-Wear relaunch scales without diluting returns.