Mothercare H1 sales decline by 25 percent

Mothercare PLC, the British heritage brand for parents and children, today released its unaudited half-year results for the 26-week period ended September 27, 2025 (H1 FY26). The report highlights a period of stabilization and strategic repositioning, characterized by a significant reduction in net debt despite a contraction in worldwide retail sales.

The Group reported worldwide retail sales by franchise partners of 90.7 million pounds, representing a 25 percent decrease from the 121.2 million pounds recorded in H1 FY25. This decline was primarily attributed to store closures in Middle Eastern markets—where a net 50 stores were shuttered due to regional unrest—and the planned conclusion of the company's exclusive partnership with Boots in the UK. On a like-for-like basis, retail sales fell by 6 percent.

Adjusted EBITDA for the period decreased to 0.8 million pounds, down from 1.7 million pounds in the previous year. The Group saw an adjusted loss of 0.5 million pounds, compared to a profit of 1.1 million pounds in H1 FY25. The Board maintained its policy of not paying a dividend, a stance held since 2012.

Chairman Clive Whiley emphasized that the business has been "stabilized as a smaller and cash generative business". A central pillar of the Group’s recovery strategy involves new international partnerships. In October 2024, Mothercare entered a joint venture with Reliance Brands Ltd in South Asia, valuing the region's operations at approximately 30 million pounds. The Group retains a 49 percent stake and expects the venture to target 50 new store openings in 2026, with a long-term goal of reaching 300 million pounds in retail sales within five years.

Additionally, a 10-year license agreement with Ebebek in Turkey was launched in June 2025. Ebebek is set to roll out a full range of Mothercare products by Spring 2026 and has expressed interest in expanding the relationship to other territories.

Looking ahead, management remains focused on restoring "critical mass" and exploring further options for the UK market as they seek a new chief executive officer to lead the next phase of global expansion.