Mothercare, known for its mother and child products, posted its full-year results, showcasing a shift from retailer to brand owner. In the 52 weeks ending 25th March, franchise partner retail sales rose 9 per cent to £ 322.7 million, though a Russian boycott impacted growth, compared to the previous year’s £ 385.3 million with Russian sales. Online sales fell 28 per cent to £ 29.3 million.
Overall, turnover was £ 73.1 million, an 11 per cent Y-o-Y drop. Adjusted EBITDA was £ 6.7 million, down from £ 12 million but surpassing analyst predictions. The company reported a net loss of £ 0.1 million versus a £ 12.1 million profit last year. The pension scheme deficit notably decreased from £ 124.6 million to £ 35 million in three years.
Looking ahead, FY ’24’s first 25 weeks saw franchise partners achieve £ 132.5 million in retail sales, down from £ 156.8 million, mainly due to Middle Eastern challenges. Mothercare is in talks with stakeholders and financing partners for future operations. Their medium-term goal is an operating profit exceeding £ 10 million in more stable conditions, along with global expansion plans.
Chairman Clive Whiley is pleased with the progress, citing Mothercare’s unique position as a trusted British heritage brand. He remains optimistic despite ongoing work and the recent CEO departure. In the interim, Clive Whiley and CFO Andrew Cook have led the board for three years.
