UK's Mothercare H1 FY26 retail sales fall 25% amid store closures

On a like-for-like basis, retail sales were down 6 per cent YoY. The online retail sales stood at £10 million, accounting for 11 per cent of total retail sales, marginally higher than in the same period last year.

The group turnover declined sharply to £11.6 million in H1 FY26 from £21 million in the prior-year period. Adjusted EBITDA dropped to £0.8 million (~$1.08 million), while the group reported an adjusted loss from operations of £0.5 million compared with a £1.1 million profit in the same period last year, Mothercare said in a press release.

Adjusted loss before taxation widened to £1.1 million, and the loss for the period stood at £1.7 million. Net debt, however, reduced significantly to £5.8 million from £17.1 million at the end of September 2024.

The group’s franchise footprint continued to shrink, with the total number of stores declining to 344 from 440 a year earlier, while retail space reduced to 858,000 square feet. Worldwide retail sales have steadily fallen over the past four years, down from £162.1 million in H1 FY23 and £137.2 million in H1 FY24.

“Mothercare is making good progress against our strategic priorities. After the strategic and operational challenges of the last few years, our performance in the first half shows that Mothercare has been stabilised as a smaller and cash generative business with greatly reduced debt. Our new partnerships with Reliance in South Asia and Ebebek in Turkiye are now bearing fruit, underlining the intrinsic value of and opportunity for our brand,” said Clive Whiley, chairman of Mothercare plc.

“From this position of relative strength our key focus for 2026 is to pursue options to rebuild our scale and operations both in the UK and globally, alongside pursuing the refinancing of our existing debt financing facilities. This is an exciting prospect for our partners, our colleagues and all our stakeholders as we look towards the new year and those opportunities ahead,” added Whiley.

In its trading update, the company said the fall in retail sales reflects the full-year impact of store reductions in the Middle East and declining UK sales as its exclusive relationship with Boots ends. Like-for-like retail sales for the six months to September 2025 were down 6 per cent.

In the Middle East, a net 50 stores were closed over the past twelve months due to reduced footfall linked to regional unrest and changing consumer behaviour. The group said it does not expect further significant closures as old inventory has largely been cleared and franchise partner profitability is improving.

Adjusted EBITDA for the period declined to £0.8 million, resulting in an adjusted loss before taxation of £1.1 million.

Looking ahead, Mothercare said its priority is to expand the global presence of the brand through partnerships, branded product development, and licensing opportunities. The group is in discussions with several parties to restore scale, monetise operational gearing, and demonstrate the growth potential of its South Asia joint venture and Turkiye licensing agreement, added the release.

ALCHEMPro News Desk (SG)