Mothercare, a well-known retailer specializing in mother and baby products, has announced that it has returned to profitability after facing numerous challenges during the pandemic. The company, which now operates as a brand-owning business that franchises its retail operations, reported a pre-tax profit of £3.6 million for the 26-week period ending on September 25th. This is a significant improvement compared to the loss of £13.2 million during the same period last year. Mothercare attributed this turnaround to the continued impact of Covid-19 on their business.

In addition to the profit growth, the company’s adjusted EBITDA, a measure of profitability, also showed positive results, reaching £5.6 million compared to a loss of £0.1 million in the previous year. However, over the past 12 months, Mothercare’s statutory loss increased to £21.5 million from £8.5 million in the previous year.

During the 26-week period, Mothercare experienced a slight decline in turnover, dropping from £44.4 million to £41.7 million. This decrease was attributed to the closure of over 10% of its global partner stores. Furthermore, the total number of franchise stores decreased from 793 to 740.

Despite these challenges, Mothercare remains optimistic about its future prospects. The company highlighted a strong order book from its franchise partners for the upcoming AW22 season, featuring an elevated product offering that has received positive feedback. Chairman Clive Whiley expressed confidence in the company’s transformation efforts and stated that they enter the second half of the year with growing confidence.

Mothercare’s success in returning to profit amidst the ongoing effects of the pandemic demonstrates the resilience and adaptability of the brand. With an efficient operating structure and positive feedback on its new product ranges, the company believes it is nearing its full potential. As it continues to navigate the constantly changing retail landscape, Mothercare is committed to delivering high-quality products and services to meet the needs of mothers and babies worldwide.

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