Mulberry Lifts Asia Pacific Like-for-Like Sales 24% as First-Half Demand Rises
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Mulberry lifted its Asia-Pacific like-for-like sales by 24 per cent in the 26 weeks ended September 26, 2026, as international demand pulled first-half group sales up 18 per cent.
Total regional revenue in Asia Pacific grew 5 per cent over the period, pointing to a sharp divergence between existing store productivity and overall footprint changes across regional shopping malls.
Group sales climbed 18.1 per cent at actual exchange rates and 18.2 per cent on a constant-currency basis. The United States led global gains with like-for-like sales up 34 per cent, followed by Asia Pacific at 24 per cent, continental Europe at 21 per cent, and the British domestic market at 9 per cent. Franchise and wholesale operations across all markets rose 52 per cent, lifting wholesale and third-party channels to 17 per cent of total group turnover compared with 16 per cent in the prior-year period.
Margin Discipline and Full-Price Trading
Mulberry protected profitability by curbing markdowns across international store networks. Outside of planned clearance events, promotional sales accounted for a share of revenue 300 basis points lower than a year earlier, lifting gross margin across direct-to-consumer operations.
Stronger consumer uptake centred on seasonal releases such as Raffia and Crochet lines, alongside the Stevie range and Darley Camera Bag. Legacy leather goods retained traction, with core handbag lines Bayswater and Lily generating sustained volumes across Asian concession counters and standalone flagships. Footfall in key commercial centres also drew support from an international visibility push tied to the Mulberry by Christopher Kane collection presented at London Fashion Week.
Wholesale distribution expanded through partner channels, including the launch of a digital storefront on Bloomingdale’s Marketplace in North America, complementing wholesale supply arrangements in regional department stores.
Store Productivity Versus Network Expansion
The gap between Mulberry’s 24 per cent like-for-like sales growth in Asia Pacific and its 5 per cent total regional revenue increase highlights an operational pivot. Rather than pouring capital into new floor space across prime Asian shopping streets, the British leather goods maker is squeezing higher sales densities out of its existing boutique network. Luxury department store landlords face brands that are increasingly unwilling to open marginal doors simply to buy market presence.
“The gap between Mulberry’s 24 per cent like-for-like sales growth in Asia Pacific and its 5 per cent total regional revenue increase highlights an operational pivot.”
For regional retail operators and franchise partners, the 52 per cent surge in wholesale and franchise turnover shows where commercial risks are shifting. Mulberry is leaning harder on local distribution partners to absorb inventory risk while keeping its direct store balance sheet light. That strategy insulates corporate cash flow against sudden luxury spending slowdowns in East Asia, but it places margin pressure directly on franchise operators who must shift stock at full price without heavy seasonal discounting.
Turnaround Milestones
The first-half performance builds on a modest recovery booked during the previous financial year. Mulberry posted annual group revenue of £125.5 million for FY2026, an increase of 4 per cent from £120.4 million recorded 12 months prior.
Chief Executive Andrea Baldo has spent the past year restructuring operating overheads and scaling back markdown activity across physical and digital storefronts to reposition the label in the affordable luxury tier.
“The strength of our performance reflects the work undertaken over the past year to refocus the Group around product, brand and customer, while maintaining a disciplined approach to trading and cost management.”
Baldo stepped into the second half of the fiscal year by introducing Delilah, Oxblood, and Vintage Oak colour palettes across core leather accessories to sustain full-price momentum through the winter holiday shopping season.
Medium-Term Financial Targets
Management maintained its medium-term financial objective to surpass £200 million in annual group revenue, equivalent to roughly $266.7 million. The executive team is pairing that top-line target with a goal to reach an adjusted earnings before interest and taxes margin of 15 per cent.
Mulberry will release its full first-half results on November 19, 2026.