Shares of Mothercare plc (MTC.L) were losing around 15 percent on the London Stock Exchange after the company reported Monday a decline in global retail sales for fiscal 2026, and projects sharply lower adjusted EBITDA, amid challenging market conditions.
In its pre-close trading update, the specialist global brand for parents and young children reported that its worldwide retail sales from franchise partners were 180 million pounds, marking a 22 percent year-over-year decline on a reported basis, or down 19 percent at constant currency.
The performance was impacted by several factors, including the end of its exclusive distribution agreement with Boots in late 2025, adverse foreign exchange movements and continued uncertainty in Middle Eastern markets.
The company also cited the recent impact of Iran conflict during the final month of the reporting period.
Excluding the Middle East and the UK, on a like for like basis, total retail sales were positive for the full year.
For the year, EBITDA before adjusting items is now expected to be approximately 1.25 million pounds, compared to 3.5 million pounds recorded last year.
The impact of the war in the Middle East in the last month is projected to be around 0.1 million pounds.
On the London Stock Exchange, shares of Mothercare were trading 15.30 percent lower, at 1.1900 pence.
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