Mothercare forecasts profit despite 40% sales drop

Mothercare has predicted that it will see a profit this year despite a 40% drop in sales.

The maternity care retailer reported a “small” EBITDA profit growth in its pre-close trading update.

Retail sales declined by 40% to £326 million in the year to March 27 after the impact of Covid-19 hit its various markets around the world.

Mothercare’s UK division has been in administration since November 2019. The business was subsequently wound down in February last year, resulting in 79 store closures and 2500 redundancies.

Mothercare reported a pre-tax loss of £4.4 million for the six months to October 10, from a £4 million profit the year before.

“As a global brand the impact of Covid-19 has varied enormously by market as the countries in which our franchise partners operate have addressed the Covid-19 pandemic in many different ways, including restrictions on travel, movement and operating hours of retailers,” Mothercare said.