Mothercare reported a sharp fall in sales and profitability in its latest full-year results, which it has attributed to the continued challenges facing its franchise-led business model as ongoing Middle East disruption and the end of its partnership with Boots weighed on performance.
For the 52 weeks to 28 March 2026, group revenue fell 42% year on year to £22.4m, while adjusted EBITDA declined 63% to £1.3m. The retailer also moved from a £6.2m statutory profit a year earlier to a £5m statutory loss. Net debt increased to £6.4m from £4.5m.
The group’s franchise partners generated worldwide retail sales of £180m during the year, down from £280.8m in the previous period, while the number of stores operating under the Mothercare brand fell from 372 to 331.
Franchise hit by external factors
Management attributed much of the decline to ongoing instability in the Middle East, one of Mothercare’s most important franchise markets, as well as the conclusion of its arrangement with Boots in the UK. The company said franchise partners recorded sales of £58.5m during the first 19 weeks of FY27, down from £68.8m in the comparable period, largely reflecting those two factors.
However, it pointed to signs of resilience in other territories, stating that like-for-like retail sales were positive when the Middle East and UK operations were excluded.
Management struck a positive note
Clive Whiley, Chairman of Mothercare, described the company’s performance as “resilient” in the face of these challenges. He added: “We remain in discussions to restore critical mass, a process greatly assisted by our successful refinancing and better alignment of the first-charge debt instrument with our equity.”
The results nevertheless underline the scale of Mothercare‘s challenge. With revenue and earnings both shrinking sharply, the retailer’s recovery will depend heavily on stabilisation in key overseas markets and its ability to replace lost UK sales through new partnerships and franchise growth. The results raise fresh questions about whether Mothercare’s reduced-scale business can deliver sustainable profitability.
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