Mothercare, the British parenting and baby products brand that operates through a global franchise network, reported worldwide retail sales by franchise partners of £180 million for the 52 weeks to 28 March, down 22% from £230.6 million a year earlier.
The decline, 19% at constant currency, stemmed largely from prolonged uncertainty in Middle Eastern markets, including the recent impact of the Iran war, which has added to cost of living pressures and impinged on consumer confidence, plus the ending of Mothercare's exclusive UK distribution arrangement with Boots - which happened at the end of 2025.
Earnings (adjusted EBITDA) fell to £1.3 million from £3.5 million, while the group swung to a statutory loss of £5.0 million from a £6.2 million profit the prior year, when results were boosted by proceeds from the sale of India IP rights.
Net borrowings rose to £5.7 million at year-end from £3.7 million, after Mothercare refinanced its debt facilities in February through a new vehicle, CTM Funding, replacing the previous Gordon Brothers facility.
Excluding the Middle East and the UK, like-for-like retail sales were positive for the full year, and the group struck a joint venture with Reliance Brands covering the South Asian region, alongside a new license agreement with ebebek in Turkey.
"The recent financial performance has been resilient as we look to FY27, acknowledging the ongoing situation in the Middle East and the end of our arrangement with Boots in the UK alongside our progress in other markets", said chairman Clive Whiley.
In the first nineteen weeks of the new financial year, franchise partners' total retail sales were £58.5 million, down from £68.8 million, though positive on a like-for-like basis excluding the Middle East and UK.
