LONDON — Mulberry narrowed losses and returned to revenue growth for the fiscal year ending March 28 as its “Back to the Mulberry Spirit” turnaround plan began making “meaningful” progress.

Group revenue rose 4 percent to 125.5 million pounds, with growth accelerating to 11 percent in the second half. Retail and digital revenue increased 9 percent year-over-year in the period.

The British brand downsized its reported loss before tax to 8.9 million pounds from 32.2 million pounds in the previous year. The loss before tax shrank to 8 million pounds from 24.1 million pounds, while EBITDA, or earnings before interest, taxes, depreciation and amortization, was 800,000 pounds, compared with a 16.8 million pounds loss in fiscal 2025.

Gross margin increased to 71.9 percent from 66.8 percent, helped by fewer promotions and a focus on full-price sales. Operating expenses fell 10 percent to 96.2 million pounds, even as the company continued to invest in marketing, brand and digital.

The overall improvement showed that chief executive officer Andrea Baldo’s turnaround strategy is paying off. Baldo has repeatedly described it as a long-haul effort rather than a quick fix.

“A turnaround is never linear. It’s a marathon, not a sprint,” Baldo told WWD during a call on Wednesday, adding the brand is “delivering what we promised” while remaining cautious about the macroeconomic backdrop.

Launched in early 2025, “Back to the Mulberry Spirit” aims to simplify the business, restore commercial discipline, put creativity at the center and reconnect with existing customers rather than reposition the brand.

Baldo said the focus has been on “rediscovering” Mulberry’s strengths in heritage, craftsmanship and creativity and bringing them “back to the center of every decision,” from product to budgets.

One of the clearest signals is coming from Mulberry’s home market, the U.K., which the brand sees as its foundation for growth.

Baldo said more than half of U.K. retail and digital sales in the period came from returning U.K. customers, suggesting the brand is winning back lapsed clients in its home market, where it has also expanded wholesale through new partnerships with John Lewis, Liberty, Flannels and Harvey Nichols.

“The fact that there is so much to recover in the U.K., because the business is much smaller than it was before the pandemic, shows there is an upside. That’s why we are focusing most of our investment there,” said Baldo, adding that establishing a strong domestic position was critical for international growth.

“Asia Pacific responds well when a heritage brand is strong in its own territory. The country of origin is extremely important,” he said.

New products helped drive interest and supported the shift back to full-price. The Bayswater limited edition sold out within minutes, Mulberry said, while the Scotchgrain range also performed well. The Roxanne bag, the first major launch under the new creative team, has also gained momentum, supported by a campaign featuring “Wicked” star Cynthia Erivo.

Those launches are part of a broader effort to reinforce the Mulberry icon styles, and to stretch into non-leather categories such as raffia and crochet. Baldo said he wants Mulberry to be a “handbag expert across the entire year.”

The brand has also moved to strengthen its fashion offer, appointing Christopher Kane as ready-to-wear creative director earlier this year.

As reported, the company will stage a runway show following a six-year hiatus from London Fashion Week. Kane’s debut collection for the brand will show on schedule on Sunday, Sept. 20 at 3:00 p.m.

The collection is due to land in stores and online in January 2027 and is expected to showcase a “modern town and country” take on British lifestyle, aimed at slightly younger, fashion-forward customers.

“Going back to fashion week is about reaching customers that are fashion-forward and probably slightly younger than the current customer. It’s a huge marketing moment for the brand,” Baldo said.

Mulberry said trading in the new financial year is off to a good start. For the 13 weeks to June 27, group revenue was 23 percent higher than the same period last year, with retail and digital revenue rising 18 percent, or 21 percent on a like-for-like basis.

By region, U.K. retail and digital sales were up 17 percent. Europe rose 35 percent, and the “more resilient” North America increased 23 percent, helped by deeper ties with luxury department stores such as Nordstrom and Saks and a renewed online push to reach high‑net‑worth individuals in the region.

Asia Pacific sales were 28 percent below last year in absolute terms, but 32 percent higher on a like-for-like basis as Mulberry continues to reshape the business around profitability.

“Some of the fashion‑driven markets in Asia Pacific respond well to what is on trend and what actually is culturally relevant. Our Mulberry by Christopher Kane is also much more exposed to Asia Pacific than the U.K.,” said Baldo.

“For example, in terms of development of presence, we are going to be present in six stores – only three are in the West; the rest are in Asia – and the kind of customers that we are targeting in an area where we are growing, like Korea, are seeing a great response to the new design,” he added.

On the sustainability front, Mulberry said its circular Mulberry Exchange resale business grew pre-loved sales by 46 percent, attracting younger customers and reinforcing its “made to last” positioning. Roughly half of Exchange clients are younger, fashion-aware shoppers new to the brand, according to Baldo.

The company also reported a 23 percent reduction in U.K. scope 1 and 2 greenhouse gas emissions year-on-year, increased sourcing of leather from accredited, responsible tanneries and maintained its living wage standard across the supply chain, saying long-term resilience “is built on fairness, transparency and circularity.”

Internally, the focus has been on shifting the culture towards tighter financial discipline without cutting off investment.

“Everybody needs to consider every pound as if it’s their own. Would they invest that money if it was theirs?” said chief financial officer Billie O’Connor during the call on Wednesday, adding that Mulberry’s new emphasis on profit rather than growth at any cost has changed how the executive team makes its budgets.

The group is also investing in an e-commerce re-platforming, and customer relationship management upgrade to improve customer data and support future growth, and has introduced a new retail incentive scheme to improve store performance.

On financing, Mulberry said its position has been strengthened by a 20 million-pound convertible loan note from its two largest shareholders and new committed banking facilities that run to July 2028, giving the company more resources to pursue its medium-term goals.

The company said it is targeting annual revenue of more than 200 million pounds and a 15 percent EBIT, or earnings before interest and taxes, margin over the medium term.

To get from 125.5 million pounds to 200 million pounds over five years, Mulberry would need to deliver around 10 percent growth per year, a level Baldo described as “midterm growth on an annual basis” that the group is planning for.

The brand has also focused on cost control and aligning spending with the strategy while maintaining investment in product, brand and digital. Inventory is described as “good quality” and “controlled but relevant” as the group enters fiscal 2027, with a tighter grip on promotions seen as key to sustaining the higher gross margin.

“There is more to do,” Baldo said, but argued that the combination of margin rebuild, customer re-engagement and renewed creative momentum means Mulberry is “building a stronger business for the long term.”

Mulberry shares were slightly lower in early London trading, down 0.3 percent at 136.60 pence, after opening at 132 pence and trading as high as 145 pence.