Mulberry reduced its losses in the first half of fiscal 2025, even though revenue dipped 4% to £53.9 million.

The British luxury brand cut operating expenses by 16% to £42.7 million in the 26 weeks ending September 27. By moving away from discounts and focusing on full-price sales, it raised its gross margin to 69%, up from 67% a year earlier.

The company posted an underlying group loss of £7.4 million before tax, down from £15.3 million in the first half of 2024, thanks to tight cost control and a focus on profitable stores in key markets. Its reported loss before tax more than halved to £6.9 million (from £15.7 million in 2024).

“This has been an encouraging first half as we continue to deliver our Back to the Mulberry Spirit strategy,” said CEO Andrea Baldo. “We’re still early in the turnaround, but the foundations we’ve put in place are working, and we’re starting to see that in our performance. We’re strengthening our margin and improving our cash position by focusing on full-price sales and disciplined cost management, while our refreshed product range and creative direction are reconnecting the brand with customers.”

Overall, like-for-like retail and digital revenue fell 2%. Asia-Pacific revenue dropped 17% compared to last year, mainly due to a 14% decline in like-for-like store sales. Mulberry has closed six stores in the region since the start of fiscal 2025. However, like-for-like revenue grew 4% in its three main markets: the UK, Europe, and the US.

Wholesale revenue increased 36%, with new agreements signed in the UK with John Lewis, Liberty, and Harvey Nichols. The company also saw a 46% rise in pre-owned sales compared to the same period last year.

In June, Mulberry raised £20 million from its two largest shareholders, Challice Limited and Frasers Group, to boost marketing in core markets, rebuild stock of iconic styles, and upgrade digital platforms.

Baldo, who joined Mulberry in September 2024 after serving as CEO of Ganni, has been strengthening the leadership team. During the first half, Priya Matadeen was hired as brand director and Tom Burrow from End Clothing as chief digital and customer officer.

Other highlights included the launch of the Roxanne line and updates to iconic styles like the Bayswater 9 to 5. The new Hackney line debuted at the start of the second half, with two more lines—Lennox and Boston—set to arrive before the fiscal year ends. In September 2025, Mulberry appointed Cynthia Erivo as a brand ambassador.

Looking forward, Mulberry said its “positive trading momentum continues,” despite uncertainty from external challenges and inflation in the sector. The company remains focused on restoring profitability by cutting back on promotions and markdowns, prioritizing margins over top-line growth. It feels well-prepared for the crucial holiday season, with its Christmas campaign launching in early November.

“The strong response to new icons like the Roxanne and Hackney shows that Mulberry’s distinctive spirit continues to resonate,” Baldo said. “While we’re mindful of the wider trading environment, current momentum gives us confidence as we enter the key festive period. We’re focused on maintaining this progress and building a stronger, resilient business for the long term.”

Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about Mulberry reducing its losses during its turnaround

General Beginner Questions

1 What does it mean that Mulberry is reducing its losses
It means the company is losing less money than it was before They are moving closer to breaking even and eventually becoming profitable again

2 What is a turnaround effort for a company
A turnaround effort is a strategic plan to save a struggling business It usually involves making significant changes to stop financial losses and return the company to growth and profitability

3 Why was Mulberry struggling in the first place
Like many luxury brands Mulberry faced challenges like high costs increased competition and shifting consumer spending habits especially in key markets like China and the UK

4 What are the main strategies Mulberry is using to reduce its losses
Their key strategies include
Controlling costs Cutting unnecessary spending and making their operations more efficient
Focusing on profitability Prioritizing sales of their more profitable products and collections
International growth Expanding in markets where demand is stronger like the United States and Asia
Product refinement Adjusting their product lineup to better match what customers want to buy

Advanced Detailed Questions

5 How is Mulberry restructuring its business to save money
They have been implementing measures like streamlining their management structure optimizing their store portfolio and improving supply chain efficiency to reduce operational expenses

6 Has Mulberrys focus on affordable luxury helped in its turnaround
Yes this has been a crucial part of their strategy By introducing more products at accessible price points they have been able to attract a wider customer base and increase sales volume

7 What role has digital and online sales played in reducing their losses
A significant role By strengthening their ecommerce platform and digital marketing Mulberry has been able to reach customers directly reduce reliance on thirdparty retailers and often achieve higher profit margins on online sales

8 Are there any specific financial results that show this turnaround is working
You would look for metrics in their financial reports such as a