Mothercare losses widen as Covid restrictions dent revenues

(Sharecast News) - Mothercare reported a widening of its full-year losses on Thursday as it took a hit from Covid restrictions.
In the year to 27 March, pre-tax losses widened to £21.4m from £7.7m a year earlier, with revenue down 47.9% to £85.8m.

The retailer said that while online sales grew substantially throughout the pandemic, this was not enough to offset the temporary closure of retail stores.

"As a global brand and franchise operator the impact of Covid-19 has varied enormously by market as the countries in which our franchise partners operate have addressed the Covid-19 pandemic in many different ways including, but not limited to, restrictions on travel, movement and operating hours of retailers," it said.

"These issues have been compounded by similar restrictions for our manufacturing partners, which coupled with the disruption to the global movement of freight, have caused additional challenges with availability of product for franchise partners further impacting sales for the year."

Mothercare estimated than over 80% of its partners' global retail locations are now open. However, it said trade continues to be challenging in the key markets of Russia, India, Indonesia and Malaysia as Covid-19 restrictions impact footfall and consumer confidence.