Mothercare reveals predictions for 2021 profit despite 40% sales dip

A parenting retail brand has predicted that it will see a profit in 2021 despite a 40 per cent sales decrease.

Mothercare, which has more than a thousand franchisees, saw retail sales dip to £326m, down by £216m from the previous year’s results.

It said that as well as the closure of stores, sales were impacted by restrictions on its manufacturing partners.

However, the company’s debt has reduced to £12.1m, and it is now expecting to report an EBITDA profit for the year.

Clive Whiley, chairman of Mothercare, commented: “Our performance in 2021 shows that whilst we are not immune to the impact of the pandemic on our franchise partners’ operations around the world, we have ended the year in a far stronger position than we started it.

“Our resilient performance and financial position bears out the robustness of the Mothercare business today, delivering what will be a positive if modest EBITDA result for the year.

“We enter FY22 as a conservatively financed, cash generative and profitable business.

“We expect 2022 to be a year of further progress and we can now focus upon developing our strategy and future plans to optimise the competencies and attributes of Mothercare over the next five years.

“That is an exciting prospect for all of our staff and stakeholders as we hopefully exit this most uncertain of times.”