Nursery retailer stays marginally in profit despite challenging market conditions
- Mothercare maintains profit despite sales decline
- Adjusted EBITDA marginally above previous year
- Net worldwide retail sales drop by 13%
- Sales decline attributed to difficult market conditions in the Middle East
- Net debt of £14.7m
- Focus on supporting franchise partners and monetizing brand IP
Mothercare managed to stay “marginally” in profit in its pre-close trading statement, despite seeing a decline in retail sales. The nursery retailer said its adjusted EBITDA for the year ended 30 March was marginally above the £6.7m seen in its previous year, remaining in line with market expectations. Draft figures for its unaudited net worldwide retail sales by franchise partners reached £281m for the period, marking a 13% drop from last year. Mothercare attributed its sales drop to difficult market conditions in the Middle East, which accounts for 41% of its total retail sales, while year-on-year retail sales rose in the UK. The company pulled in net debt of £14.7m, but insisted its EBITDA rise showed improvement in the “underlying profitability” of the retailer. Mothercare chairman Clive Whiley said: “Given the exogenous factors influencing some of the company’s operating markets, our immediate priority remains to support our franchise partners, ultimately for the benefit of our own business, however we have also redoubled our efforts to restore critical mass and are focused upon monetising the Mothercare global brand IP. “This remains an exciting prospect for our partners, our colleagues and all stakeholders.”
Factuality Level: 8
Factuality Justification: The article provides specific details about Mothercare’s financial performance, including adjusted EBITDA and net worldwide retail sales figures. It also mentions the reasons behind the sales drop and the company’s efforts to improve profitability. However, the article includes a digression about Poundland’s ‘Motherland’ store, which is irrelevant to the main topic.
Noise Level: 3
Noise Justification: The article provides relevant information about Mothercare’s financial performance, including its profit, sales decline, debt, and future plans. However, the mention of Poundland’s ‘Motherland’ incident is irrelevant and adds noise to the overall content.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the financial performance of Mothercare, a nursery retailer. It discusses the company’s adjusted EBITDA and net worldwide retail sales, as well as its net debt. This information may be of interest to investors, analysts, and stakeholders in the retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: There is no mention of any extreme event in the news article.
www.retailgazette.co.uk 
