Mothercare full-year losses narrow
By Michele Maatouk
Date: Friday 25 Sep 2020
(Sharecast News) - Beleaguered mother and child retailer Mothercare reported a decline in full-year revenue on Friday but a narrowing of its losses as it said it was looking forward to a "brighter and stable future".
In the year to 28 March, revenue fell 17.6% to £164.7m, with worldwide sales down 10.3% at £542.1m. However, group losses before tax came in at £6.4m compared to £18m the year before.
Mothercare said that in the first 28 weeks of FY21, its franchise partners, all of whom were severely affected by Covid-19 lockdowns, saw total retail sales drop 39% year-on-year to £145.8m.
The retailer said there has been a "strong" recovery in the Middle East since the re-opening of stores after lockdown, with the exception of UAE which has been affected by a reduction in tourism.
In Russia, recovery has been slow as government restrictions delay the full re-opening of the store estate.
Meanwhile, trade in the key markets of India and Indonesia remains challenging as the Covid-19 crisis continues to dent footfall and consumer confidence, Mothercare said.
The company said that overall, the impact of Covid-related store closures was only partially offset by countries which were able to continue to trade via online platforms.
Chairman Clive Whiley said: "We have diligently managed our way through to mitigate the impact of the COVID-19 pandemic during this period of global crisis, and we emerge in better shape than we went into it. We continue to reduce costs and improve our efficiency. We are excited to launch our new UK and Ireland franchise with Boots, restoring the Mothercare brand to its home territory.
"We have entered into a new 20 year franchise agreement with Alshaya, our largest partner. We have successfully rolled out our innovative, working capital light arrangements with our manufacturing and franchise partners. We are now singularly focused upon building Mothercare as a global brand, both in our existing territories and beyond."
Whiley said "from today, Mothercare can look forward to a brighter and stable future once more".
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