Despite the revenue decline, adjusted EBITDA for the year is expected to be approximately £3.5 million—broadly in line with market expectations. This marks a significant drop from the £6.9 million posted in the previous year, mainly due to store closures in the Middle East, with Mothercare’s total store count falling by 47 to 77 by March 2025, Mothercare said in a press release.
While the UK business faced a slight decline as the company prepares to end its exclusive distribution deal with Boots by the end of 2025, Excluding the UK, total retail sales on a like-for-like basis were positive for the full year.
Looking ahead, Mothercare acknowledged that global economic challenges and lingering inventory clearance across markets will likely continue to affect performance into FY26, added the release.
“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. 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,” said live Whiley, chairman of Mothercare.
Fibre2Fashion News Desk (SG)