Mothercare plc (LSE:MTC) has released its full-year results for 2025, reporting a decline in global retail sales to £230.6 million, down from £280.8 million in 2024. The company faced headwinds from uncertainties in the Middle East and weaker sales in the UK, which together contributed to reduced profitability.
Despite these challenges, Mothercare is aiming to leverage its well-known brand to drive a return to growth. Strategic initiatives include expanding its franchise network and exploring new markets. The company has also taken steps to strengthen its international presence, including a joint venture in India and a new licensing agreement in Turkey, designed to improve its financial position and support future growth.
The outlook remains cautious, reflecting ongoing financial pressures and weak technical indicators. Declining revenue and negative equity are key concerns, though recent pockets of profitability provide some optimism. Technical analysis points to a bearish trend, and valuation metrics remain unattractive. With no recent earnings calls or major corporate events, the stock continues to carry a higher risk profile.
Company Overview
Mothercare plc is a British heritage brand specializing in products for parents and children. The company primarily operates through franchise partners and maintains a significant international footprint, while currently focusing on restoring its market position, particularly within the UK.
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