Mothercare retail sales fall 18% in FY25

Mothercare, the specialist global brand for parents and young children, has reported an 18% decline in its worldwide retail sales by franchise partners of £231m (FY24: £281m) for the 52 week period to 29 March 2025 (FY25). According to the group, the decline largely resulted from the unchanged trading conditions in its Middle Eastern markets. Adjusted EBITDA for FY25 was £3.5m, which was in line with market expectations. However, it represents a decline from the prior year’s £6.9m, primarily due to the continuing impact of the uncertainty in the Middle East on its franchise partners’ operations. The company’s franchise partner has reduced the store numbers of many of its brands, with its Mothercare stores specifically declining by 47 over the year, bringing the total to 77 stores as of March 2025. The group stated that although the fall in retail sales can be attributed to the trading conditions in the Middle East and also partly blamed the performance of its UK operations. Mothercare stated that excluding the UK, on a like for like basis its total retail sales were positive for the full year to March 2025, despite the prevailing global economic uncertainties, highlighting the “underlying strength of the business”. As a result, the group is ending its exclusive distribution relationship with Boots at the end of 2025, as it believes there is a “greater opportunity for the brand and a new partner in the UK”. As previously reported, in addition to the global economic uncertainties which are impacting its retail sales, in many of its territories its partners are still clearing inventory due to the suppressed demand during Covid-19. Whilst there are signs of this process concluding in some territories, the group expects these factors will continue to impact its results in FY26. Clive Whiley, chairman of Mothercare, said: “Our results for last year reflect the impact of the continuing uncertainty on our franchise partners’ operations in the Middle East. However, the de-leveraged business resulting from the recent India joint venture and refinancing, together with the ongoing support of our lender and pension trustees, is enabling us to continue to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters. “Given the factors influencing some of the company’s operating markets, our immediate priority remains to support our franchise partners, ultimately for the benefit of our own business. In that context we remain in discussions with several parties to restore critical mass alongside delivering our remaining core objectives.” He added: “The underlying business has continually proved its resilience and the strength of the brand is evident from the interest it generates and the resultant discussions with potential strategic partners we are having. I would like to thank all of our colleagues for their efforts in difficult circumstances and the board remains determined to optimise the brand IP for the benefit of all stakeholders.”

Mothercare retail sales fall 18% in FY25

As previously reported, in addition to the global economic uncertainties which are impacting its retail sales, in many of its territories its partners are still clearing inventory due to the suppressed demand during Covid-19

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