Mothercare FY26 impacted by Middle East tension and end of Boots partnership

Mothercare plc has issued a pre-close trading update for the 52-week period ending March 28, 2026. The specialist global brand for parents and young children reported unaudited worldwide retail sales by franchise partners of 180 million pounds. This represents a 22 percent decline compared to the previous year, or a 19 percent decrease at constant currency. Adjusted EBITDA for the period is expected to be approximately 1.25 million pounds, down from 3.5 million pounds in 2025.

Performance was impacted by the conclusion of the exclusive distribution relationship with Boots at the end of 2025, alongside foreign exchange volatility and ongoing uncertainty in Middle Eastern markets. Recent conflict in Iran also affected the final month of the period. Despite these challenges, total retail sales remained positive on a like-for-like (LFL) basis when excluding the UK and the Middle East.

The company reported net borrowings of 5.7 million pounds, an increase from 3.7 million pounds in March 2025. The pension scheme deficit remained stable at 35 million pounds as of December 31, 2025. Following a successful debt refinancing in February 2026, the group has secured additional time to enhance its brand intellectual property and operational gearing.

Clive Whiley, chairman, noted that the results reflect the resilience of the asset-light franchise system amidst geopolitical disruption. Whiley confirmed that the company remains in discussions with several parties to restore critical mass and explore new partnership opportunities within the UK market, supported by the recent alignment of debt instruments with equity.

This article was created by AI and edited.