​Mothercare sales slip as uncertainty in Middle East takes its toll

In the 52 weeks to March 28, unaudited worldwide retail sales by franchise partners declined 22% year on year to £180m.

Adjusted EBITDA was at £1.25m, down from £3.5m, and net borrowings reached £5.7m, up from £3.7m.

The retailer said its performance reflects the end of its exclusive distribution relationship with Boots at the end of 2025, foreign exchange rate impacts, and the uncertainty in the Middle East including the impact of the Iran war in the last month.

Mothercare estimates the impact of the war to be around £0.1m, but it is under review. 

It added that the “underlying strength of the business” is that excluding the UK and Middle East, total retail sales on a like-for-like basis were positive in the year to March 2026. 

Mothercare chair Clive Whiley said: “Our results for last year reflect the impact of the continuing uncertainty on our franchise partners’ operations in the Middle East, where any longer-term impact upon supply chains remains unclear at this stage, and the underlying profitability and cash generation of our asset-light franchise system.

“The full refinancing of our debt facilities in February 2026 has bought additional time to engineer a more comprehensive solution to harvest the value of the brand IP and the significant operational gearing available to an expanded business. 

“In these circumstances, the recent financial performance has been usefully resilient as we look to FY27, while acknowledging the impact of the continuing disruption from events in the Middle East.

“Given the external factors influencing some of the company’s key operating markets, our immediate priority remains to support our franchise partners, ultimately for the benefit of our own underlying business, where the strength of the Mothercare brand endures. We remain in discussions with several parties to restore critical mass, a process greatly assisted by the recent alignment of the first-charge debt instrument with our equity.”