MULBERRY GROUP (MUL) H1 2026 earnings summary

Executive summary

• Revenue declined 4% year-over-year to £53.9m, with strong wholesale growth (+36%) offsetting retail and digital softness.

• Gross margin improved to 69% from 67% last year, reflecting a focus on full-price sales and inventory optimization.

• Operating expenses fell 16% to £42.7m, driven by cost discipline and restructuring.

• Loss before tax more than halved to £6.9m from £15.7m, with underlying loss before tax at £7.4m.

• £20m raised via Convertible Loan Notes from major shareholders to support sustainable profit and cash generation.

Financial highlights

• Group revenue down 4% to £53.9m compared to £56.1m last year.

• Gross profit stable at £37.3m, with gross margin rising to 69.2%.

• Operating expenses decreased 16% to £42.7m, with underlying expenses down 13%.

• Reported loss before tax improved to £6.9m from £15.7m year-over-year; underlying loss before tax £7.4m.

• Net cash outflow from operations of £4.6m, with a net decrease in cash and cash equivalents of £1.0m.

Outlook and guidance

• Positive trading momentum continues into the second half, despite sector headwinds and inflation.

• Focus remains on margin over top-line growth, with reduced promotional activity.

• Second half to feature new product launches and a key festive trading period.

• Trading for the full year expected to be weighted towards the second half.