For the 52 weeks ending 28 March 2026, the maternity and children’s retailer saw worldwide retail sales by franchise partners drop to £180.0m ($243.6m), down 22% year-on-year from £230.6m.
Mothercare chairman Clive Whiley said: “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. 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.”
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Key highlights from FY26 performance
Mothercare recorded a statutory loss of £5.0m for the year, a reversal from the £6.2m profit posted a year prior. Its loss from operations stood at £1.2m, compared to a £16.0m profit the previous year.
During the year, the company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to £1.3m, down from £3.5m in 2025, driven by lower royalties and the impact of changes related to the company’s India joint venture.
The adjusted loss for the year was £3.3m, compared to £2.5m in 2025.
Mothercare saw its administrative expenses before adjusted items were reduced by £2.1m to £10.4m, with the largest savings coming from IT costs.
This reduction was attributed to savings from the new ERP system and lower IT support costs, as well as tighter controls on payroll, professional fees, and pension expenses.
The company’s net debt increased to £6.4m, up from £4.5m the previous year.
In February this year, Mothercare completed a refinancing of its debt facilities, expanding to £10.0m.
The company said this refinancing allows for a longer window to pursue a “more comprehensive solution” to leverage the business’s operational structure in markets outside its core troubled regions.
Current performance and market outlook
In the first 19 weeks of the new financial year, franchise partner retail sales totalled £58.5m, down from £68.8m for the same period last year.
The decline continues to reflect ongoing instability in the Middle East and the end of the Boots arrangement. Excluding the Middle East and the UK, like-for-like retail sales were positive in this period, the company said.
Mothercare’s results highlight the vulnerability of its franchise-based, asset-light model to geopolitical shocks, particularly in its historically important Middle Eastern operations.
The company stated that any longer-term impact on supply chains in the region remains unclear.
With no major changes to market conditions anticipated by management for the year ahead, efforts are set to focus on supporting franchise partners and seeking new opportunities to restore wider market presence, including in the UK with a potential new partner.
