This decline is largely attributed to Mothercare's store closures in the Middle East and its planned exit from its partnership with Boots in the UK. On a like-for-like basis, retail sales decreased by 6%.
The company operated from 344 stores worldwide during the period, down from 440 the year before, with total store square spare falling to 858,000 square ft from 1.1m sq ft previously.
Online retail sales for the period rose slightly to account for 11% of total retail sales, compared to 10% in the first half of the previous fiscal year.
Mothercare expects to maintain a generally cash-neutral position over the next 12 months, with anticipated growth in retail sales and income surpassing FY26 levels, especially in Turkiye and India.
Highlights of Mothercare’s H1 results
The UK-based mum-and-baby clothing retailer's revenue plunged 45% to £11.6m - the result of the ne dof the group's five-year exclusive partnership with Boots.
The company's adjusted EBITDA fell to £0.8m from £1.7m in the previous year. It reported an adjusted loss from operations of £0.5m, compared to a £1.1m profit in the prior period.
The adjusted loss before taxation improved slightly to £1.1m from a £1.4m loss reported last year.
Net debt was reduced to just £5.8m by the end of the half, around a third of the £17.1m reported last year.
Mothercare chairman Clive Whiley said: “Mothercare is making good progress against our strategic priorities. After the strategic and operational challenges of the last few years, our performance in the first half shows that Mothercare has been stabilised as a smaller and cash generative business with greatly reduced debt. Our new partnerships with Reliance in South Asia and Ebebek in Türkiye are now bearing fruit, underlining the intrinsic value of and opportunity for our brand.
South Asia and Türkiye partnerships drive future growth
Mothercare has made notable progress in its joint venture with Reliance Brands, a subsidiary of Reliance Industries, for the South Asian market. This venture, valued at approximately £30m, grants Reliance Brands perpetual rights to use the Mothercare brand in India, Sri Lanka, Nepal, Bangladesh, and Bhutan.
Despite receiving lower revenues than before, Reliance Brands aims to increase retail sales to roughly £300m within five years, supported by plans to open 50 new stores in 2026.
In Türkiye, Mothercare has entered a licensing agreement with Ebebek Mağazacılık, granting exclusive rights to use the Mothercare brand for a decade.
Ebebek Mağazacılık operates close to 280 stores and has recently expanded into the UK. This agreement also allows Mothercare to purchase and rebrand products sourced by Ebebek Mağazacılık for sale outside Türkiye.
Mothercare aims to expand its global presence by enhancing branded product ranges and licensing both within and beyond current markets. The company said that discussions with various parties are focused on monetising operational efficiencies, increasing business volumes to boost income, and leveraging growth opportunities through the South Asian joint venture and Türkiye licensing agreement.
These efforts aim to enhance the brand's intellectual property value, improve profitability, and strengthen the business's financial standing, said the firm.
Despite a reduction in the Middle Eastern market, where 50 stores were closed over the past year, Mothercare does not anticipate further significant closures, as profitability is improving following the clearance of old inventory.
“From this position of relative strength, our key focus for 2026 is to pursue options to rebuild our scale and operations both in the UK and globally, alongside pursuing the refinancing of our existing debt financing facilities. This is an exciting prospect for our partners, our colleagues and all our stakeholders as we look towards the new year and those opportunities ahead,” added Whiley.
