The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Embattled UK retailer Mothercare Plc slashed its outstanding net debt to just under £7 million last year as it completed a programme of store closures that its leadership hopes will put the company on a more solid financial footing.
The baby products retailer, on an emergency footing that has seen it close a third of its UK stores in the past 12 months, registered a loss before tax from continuing operations of £67 million versus £94 million a year earlier.
But the company, which aims to be debt-free by the end of 2019, slashed its debt burden by 84.4 percent compared to a year ago to just £6.9 million.
Shares of the owner of the Little Bird, Baby K and Blooming Marvellous brands surged 19.1 percent to 24.3 pence in response.
ADVERTISEMENT
"We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business," Chief Executive Mark Newton-Jones said.
"The majority of that work is now done."
The high street retailer has been facing intense competition from a new generation of online players which forced it to take radical steps last year that included closing over a third of its UK stores.
Like-for-like sales in the UK, where it has been losing money for more than a decade, continued to falter and tumbled nearly 9 percent. Annual worldwide sales slipped 8 percent to £1.07 billion.
"The next phase of our strategic transformation plan is to develop Mothercare as a global brand, maximising the opportunities we see across many international markets," Newton-Jones said.
By Shashwat Awasthi; editor: Patrick Graham.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.