Mothercare has swung to a profit in the first half of the year despite a drop in turnover.
In the 26 weeks to September 25, the British maternity and childrenswear specialist reported a profit before tax of 3.6 million pounds compared to a loss of 13.2 million pounds a year earlier.
The company’s turnover in that period dropped 6 percent to 41.7 million pounds.
Mothercare said it continued to be “heavily impacted” by the pandemic, with just over 10 percent of its partners’ global stores closed at the end of the period.
The company has undergone a major restructuring in recent years, only to then be hit hard by the pandemic.
Upbeat on recover
But the London-listed company was upbeat that the initiatives it has previously implemented to improve profitability have begun to “bear fruit”.
It said it is now “well placed” for further improvements in performance as retail sales return to pre-pandemic levels across markets.
Mothercare also said it has seen a “strong” order book from franchise partners for the autumn/winter 2022 season, which is the second season of its new elevated product offering following positive feedback from its global franchise partners.
The company said that while it remains cautious, it expects its second-half performance to be at similar levels to the first half.
Chairman Clive Whiley said in a statement: “I am pleased to announce results that demonstrate we are moving closer to unlocking the true underlying potential of Mothercare, reflecting the strong foundations we have created for the business over recent years, despite the impact that Covid-19 still has had over the period.
“With positive feedback to our new product ranges, and a lean operating structure, we enter the second half with growing confidence for our future prospects.”