Struggling baby products retailer Mothercare has today reported a 8.4% drop in half-year worldwide sales.
The company was hit by past troubles at its UK operations and tough macroeconomic conditions in the Middle East and China.
The company, which operates 1,010 overseas franchise stores, is dealing with stiff competition from online retailers and rising costs, leading to the collapse of its UK operations last month.
"We believe that without the financial and management burden of running a UK retail operation, we can singularly focus Mothercare on its global international franchise," its chief executive Mark Newton-Jones said.
But volatility in its key international markets, including India, Indonesia and Russia, and supply disruptions from closure of UK stores could result into deteriorating trading performance.
This lead Mothercare to warn that there was "material uncertainty" in its ability to continue as a going concern.
Its worldwide sales dropped 8.4% to £452.3m for the 28 weeks to October 12. The reporting period included sales in its UK operations.
However, adjusted pretax loss shrank to £5.8m in the half-year, from £10.5m reported a year earlier.
Net debt nearly quadrupled to £24.5m at the end of the six-month period, from £6.9m at the end of March.
Mothercare Ireland, a separately owned and family run business, has 14 stores around the country.
The business was started by David Ward in 1992 and is now run by his two sons Jonathan and Ben and daughter Laura.
