Mulberry sales rose 18.1% in the first half, but the update has no profit figure yet

Mulberry's sales rose 18.1% at actual currency rates in the 26 weeks to September 26, 2026, according to the half year trading update the British handbag maker issued on October 19. Growth was strongest in the United States and came with a lower share of discounted sales. What the update leaves out is as important as what it says: there is no revenue total, no margin figure and no profit.

What Mulberry reported

The company, which describes the half as in line with the board's expectations, gave sales growth of 18.1% at actual rates and 18.2% at constant currency. By region, the US rose 28% (34% like-for-like), Europe outside the UK 23% (21% like-for-like), the UK 10% and Asia Pacific 5%. Franchise and wholesale rose 52% and now account for 17% of sales, up from 16% in the prior-year half.

Promotional sales fell by 300 basis points as a share of sales, which Mulberry says supported gross margin. That is the number to read most closely. Selling more at full price is the plan chief executive Andrea Baldo calls "Back to the Mulberry Spirit", and the company credits that approach for returning the business to growth and reducing its losses last year.

The base is small and was falling

Context matters here. In the first half of the previous year, the 26 weeks to September 27, 2025, Mulberry's revenue fell 4% to £53.9 million, with a loss before tax of £6.9 million, according to FashionUnited's report on those results. Apply 18.1% to £53.9 million and the implied first half revenue is about £63.7 million. That is our arithmetic, not a figure Mulberry has published, and it assumes the growth rate applies to the reported base.

The full year to March 28, 2026 shows the same pattern. Revenue was £125.5 million, up 4%, with second half revenue up 11%. Loss before tax was £8.9 million, down from £32.2 million, and gross margin rose to 71.9% from 66.8%. Net debt was £7.4 million. The company said revenue in the 13 weeks to June 27, 2026 was 23% higher than a year earlier. If the first quarter grew 23% and the half grew 18.1%, the second quarter grew by less than 18.1%. Growth is real, but it appears to be cooling from its first quarter pace.

What drove it

Mulberry credits strong demand for seasonal and core lines. It names Raffia, Crochet, Stevie and the Darley Camera Bag among the new launches, and Bayswater and Lily among the core bags. It also cites the Mulberry by Christopher Kane runway show at London Fashion Week for brand visibility.

In the US, the company links growth to digital channels, including the launch of Bloomingdale's Marketplace, and an expanded wholesale presence. That matters because wholesale growth of 52% is a different business from a flagship customer: it moves stock faster but at a lower margin per bag. Mulberry has not said how the mix affects margin. The half year results should.

How to read the regional split

The US figure is the headline, and it deserves a caution. Like-for-like growth of 34% sits above reported growth of 28%, and Mulberry does not explain the gap in the update. In the UK the two numbers are close, 10% and 9%, which suggests a steadier base. Europe outside the UK sits in between at 23% and 21%.

Asia Pacific is the weak spot at 5%. Mulberry does not explain it in the update, and we will not guess. The honest reading is that the recovery so far is Western: the US, Europe and the UK together carry it, while the Asian market that many luxury groups lean on is barely moving for this brand. The same Americas strength showed up at Prada Group, whose first half retail sales there rose 37% at constant currency.

What it does not tell you

A trading update is a sales statement. It does not carry revenue in pounds, cost lines, store closures or cash. Last year's results show why that matters: Mulberry closed eight international stores and one UK store in the year to March 2026 while opening one UK store and two John Lewis locations. A business can grow sales while shrinking its footprint and still be losing money.

The company is open about its next goals. Its stated priority is to rebuild gross margin and restore profitability, and its medium-term targets are annual revenue above £200 million and a 15% adjusted EBIT margin. Against £125.5 million of revenue in the last full year, £200 million means growing about 59%. The FY27 budget assumed 13% growth, so the first half is running well ahead of plan.

Mulberry itself calls the environment challenging and notes that the second half enters with a strong product pipeline, including the Delilah, Oxblood and Vintage Oak colorways that launched recently. For readers weighing price rises in the sector, our piece on when luxury houses raise bag prices covers how the larger houses handle full-price selling.

Our take

This is a good sales update from a company that needed one, and the lower promotional share is the most encouraging detail in it. It is not yet proof of a turnaround, because profit is the test and Mulberry has not given a profit number. We would watch November 19 for three things: revenue in pounds, gross margin against the 69% of a year ago, and whether the loss before tax shrinks below the £6.9 million of the prior first half. Until then, treat 18.1% as a strong start rather than an answer.