Mulberry's CEO Andrea Baldo said its London sales could be boosted by families moving back to the UK from Dubai due to the Iran war. According to Baldo, the link between Dubai and London is so strong the brand might hopefully see some families come back, particularly around school term times in September. He noted it is 'too early' to see signs of this movement at the minute, but described a scenario where residents are going back to London at least temporarily. This potential upside comes as Mulberry's sales bounced back due to a turnaround strategy re-focused on its home market, with group sales rising 13.6% in the six months to 28 March 2025.
In the UK, sales rose 13.7% in the second half thanks to new bags and concessions in John Lewis and Selfridges stores. Mulberry has rejigged prices so that 60% of its wares are sold below £1,000, offering value in the £800-£1,200 range. A new Boston bag priced at £1,395 performed strongly, and a limited edition Bayswater bag priced at £1,855 sold out within minutes when launched in February.
Its London sales could be boosted by families moving back to the UK from Dubai due to the Iran war.
Despite this sales growth, Mulberry made a loss of £23.7 million for the year to March 28 2025, with no profit guidance provided. Research indicates Mulberry's revenue fell 19% year-on-year to £56.1 million in the first half of 2024, with an underlying loss before tax widening to £15.3 million.
Mulberry's total international retail sales were down 17% to £19.5 million, driven by a 31% slump in Asia-Pacific to £9.3 million. The company reduced operating expenses by 16% to £50.7 million, but gross margin slipped to 67% from 70%. According to Baldo, while giants Hermes and LVMH have seen sales in the Middle East dented by the conflict, he was not especially concerned as the business is not as reliant on the region compared to rivals.
While giants Hermes and LVMH have seen sales in the Middle East dented by the conflict, Baldo said he was not especially concerned as the business is not as reliant on the region compared to rivals.
To support its strategy, Mulberry raised £10.4 million by selling off shares and increased debt facilities. The brand will focus on opening more shops outside of London, including a new store in Liverpool before Christmas 2025.
Mulberry's board rebuffed a takeover offer from Frasers Group, which has a 37% stake, saying it did not recognize the brand's future potential value. Frasers Group decided not to make a formal offer but believes market headwinds and lack of commercial plan place Mulberry in a difficult financial position.
Shops in its home market could even benefit from Brits moving back home from Dubai - although it is 'too early' to see signs of this at the minute.
Research indicates the war in the Middle East is upending lives and livelihoods in the region and beyond, dimming the outlook for many economies. The shock from the war is global but asymmetric, with energy importers, poorer countries, and those with meager buffers more exposed. The conflict has caused serious disruption to the economies of the most directly affected countries, including damage to infrastructure and industries that could become long-lasting.
Large energy importers in Asia and Europe are bearing the brunt of higher fuel and input costs due to disruptions in the Strait of Hormuz. About 25 to 30 percent of global oil and 20 percent of liquefied natural gas pass through the Strait of Hormuz.
There are a lot of residents going back to London at least temporarily.
Escalating insecurity around the Strait of Hormuz has constrained maritime flows, forcing energy markets into volatility with rising prices and uncertain supply chains. The Strait of Hormuz carries roughly a fifth of global oil supply, and since late 2025, shipping disruptions have reduced flows by an estimated 15 to 20 percent. Reduced throughput has triggered logistical challenges, with tankers rerouted adding nearly two weeks to delivery schedules, increasing costs and disrupting inventory planning.
Shipping reroutes can add up to one million dollars per voyage in fuel costs, passed on to importers and consumers. Insurance premiums for vessels in high-risk zones have surged, reducing available shipping capacity and inflating global energy prices.
The link between Dubai and London is so strong we might hopefully see some families come back.
Approximately one-third of fertilizer trade depends on transit routes affected by Middle East instability, making agricultural systems vulnerable. Fertilizer prices have accelerated since early 2026, with urea costs rising significantly compared to 2024 levels, affecting food production. Rising fertilizer costs are translating into higher food prices, particularly in import-dependent regions, compounding food insecurity.
US and Israeli military strikes on Iran have sent global oil and gas markets spiraling, with oil prices near $100 per barrel. Shipments of oil and gas through the Strait of Hormuz are at a standstill due to Iranian threats to tankers. Benchmark US crude prices hover near $95 per barrel, up from prewar levels in the low- to mid-$60/bbl range.
Probably what we will see is that it is all based on school, so with term-times in September, families could start moving around.
There is no such thing as energy independence, particularly for oil, as global markets are integrated and disruptions like in the Strait of Hormuz cause global price spikes. Research suggests clean energy technologies are not immune from supply chain disruptions stemming from geopolitical disputes, such as China's restrictions on critical minerals.
The United States, as the world's largest LNG exporter, could step up shipments to mitigate shortages, but expanded export capacity will come online in coming years, not weeks or months. International prices for LNG have jumped more than 50 percent, with little direct effect on US consumers.
Baldo said the brand was offering 'value for money' by trying to win in the £800-£1,200 price range.
Shares soared 7 percent on Monday afternoon, contributing to gains of 27 percent over the past year.
Several uncertainties cloud the outlook for both Mulberry and the global economy. Whether there is actual evidence of expats returning from Dubai to the UK due to the Iran conflict remains unclear, as Mulberry's CEO suggests it is 'too early' to see signs. The specific timeline and extent of disruptions to oil and gas shipments through the Strait of Hormuz also remain uncertain, with varying estimates of flow reductions. Economies heavily dependent on oil imports in Africa and Asia are finding it increasingly hard to access supplies, even at inflated prices. Parts of the Middle East, Africa, Asia-Pacific, and Latin America face higher food and fertilizer prices and tighter financial conditions due to the war. Low-income countries are especially at risk of food insecurity and may need more external support, which has been declining. All roads from the war lead to higher prices and slower growth globally, with outcomes depending on conflict duration, spread, and damage. The future profitability outlook for Mulberry remains unknown, as the company did not provide profit guidance despite reporting a loss. The potential for further takeover attempts or strategic moves by Frasers Group also remains uncertain, given the rebuffed offer and differing views on the brand's financial position.
The brand will focus on opening more shops outside of London, including a new store in Liverpool before Christmas this year.
The UK is the most important market for us, not just in London where our performance is really strong but also in the regions.
Despite a challenging economic and geopolitical environment, we have delivered growth across all channels and geographies, with clear momentum right across the business.
We are simplifying the business, restoring full price discipline, strengthening our connection with customers, and reasserting Mulberry’s position as a distinctive British lifestyle brand.