Mothercare H1 FY25 retail sales drop 12% YoY amid middle east crisis

Total revenue for H1 was £21.0 million (~$26.25 million), a 27.6 per cent decrease from £29.0 million in the same period in FY24. The group posted an adjusted loss before taxation of £1.4 million for the period, compared to a profit of £1.8 million in FY24. The loss for the period was £1.8 million, contrasting with a profit of £1.7 million in H1 FY24. Adjusted basic loss per share was 0.3 p in 2024, down from 0.2 p in H1 FY24, Mothercare said in a press release.

The adjusted EBITDA decreased by 53 per cent to £1.7 million from £3.6 million in H1 FY24. Similarly, the group’s adjusted profit from operations dropped significantly by 68 per cent, amounting to £1.1 million compared to £3.4 million in the same period of the previous fiscal.

The group reported an adjusted loss before taxation of £1.4 million, a stark contrast to the £1.8 million profit recorded in H1 FY24 and the net debt of the company increased to £17.1 million from £15.8 million.

The online retail sales of the company declined to £12.2 million, down from £13.7 million in H1 FY24, reflecting a weaker digital performance.

The total number of stores operated by franchise partners fell to 440 in H1 of FY25 from 500 in the same period in FY24. Correspondingly, total retail space decreased to 1,100,000 square feet, down from 1,201,000 in H1 FY24.

“Since the half-year end, we announced both a new £30 million joint venture for the South Asian region, with Reliance Brands Holding UK Limited (Reliance) and subsequent revised financing arrangements, reducing secured debt facilities by 60 per cent to £8 million and our annualised cash interest cost by over 75 per cent,” said Clive Whiley, chairman of Mothercare plc.

“We have immediately utilised this new India joint venture and refinancing as a springboard for a de-leveraged Mothercare to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters. Our results continue to reflect the impact of the continuing uncertainty on our franchise partners' operations in the Middle East. We are now focused upon restoring critical mass alongside delivering our remaining core objectives. This is an exciting prospect for all our partners, colleagues and stakeholders as we can finally leave behind the turmoil of recent years that Mothercare has successfully come through,” added Whiley.

Fibre2Fashion News Desk (SG)