Mothercare swings to loss as Boots exit and Middle East weigh
Mothercare PLC on Friday reported a sharp decline in annual revenue and a swing to loss, hurt by the end of a UK deal with Boots and uncertainty in the Middle East.
Mothercare shares were down 18% at 0.70 pence in London on Friday afternoon.
The Hemel Hempstead, England-based maker of products for parents and young children reported a pretax loss of £4.3 million in the year to March 28, swinging from profit of £11.9 million.
Revenue fell 42% to £22.4 million from £38.9 million, while worldwide retail sales generated by franchise partners declined 36% to £180.0 million from £280.8 million.
The decline follows the end of Mothercare's distribution arrangement with Boots in the UK in 2025.
Chair Clive Whiley said the group's recent financial performance had been "resilient" as it entered the new financial year, despite the ongoing situation in the Middle East and the end of the Boots arrangement.
"We remain in discussions to restore critical mass, a process greatly assisted by our successful refinancing and better alignment of the first-charge debt instrument with our equity," he said.
Mothercare said that in the first 19 weeks of financial 2027, total retail sales were £58.5 million, down from £68.8 million a year prior.
Mothercare said it is not planning for any material changes in market conditions for the financial year as a whole.
The company also highlighted the refinancing of its £10 million debt facilities, saying this provides "a more comprehensive solution to harvest the significant operational gearing" within the business.
Whiley said the group's priority remained supporting its franchise partners around the world, ultimately benefiting Mothercare's underlying business, "where the strength of the Mothercare brand endures."
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