Shares in luxury handbag maker Mulberry rose on Monday after the company reported an 18.1% increase in first-half sales, with its turnaround strategy gaining traction despite a challenging consumer environment.

The Somerset-based group said growth was driven by strong demand for both established products, including the Bayswater and Lily handbags, and newer ranges such as Stevie, Raffia, Crochet and the Darley Camera Bag.

Trading was also boosted by increased visibility following the Mulberry by Christopher Kane runway show at London Fashion Week, which drove customer engagement and traffic across stores, digital channels and wholesale partners.

Mulberry said it maintained a disciplined approach to trading, prioritising full-price sales over discounting, helping to support gross margins. The US and European businesses both delivered strong growth, while wholesale and third-party channels increased their contribution to 17% of group sales from 16% a year earlier.

Chief executive Andrea Baldo said: “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. The growth in full-price sales is particularly encouraging, demonstrating that our collections are resonating with customers across our key markets.”

Mulberry said it entered the second half with strong customer engagement and a robust product pipeline, although it cautioned that trading conditions remain challenging. The group continues to target annual revenue of more than £200m and an adjusted operating margin of 15% over the medium term.

Shares in Mulberry, which will report first-half results on 19 November, rose 7.2% to 245.52p.

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