Mothercare suspends Russian operations, forecasts big hit to profits
Mothercare has announced the suspension to all business in Russia, including shipment of all products, following Russia's invasion of Ukraine.
Mothercare added that its local partner in Russia will be pausing operations in about 120 stores and online, as the company joins the growing list of Western brands to put operations in Russia on hold.
Russia represents around 20% to 25% of Mothercare's worldwide retail sales and was previously expected to contribute around £500,000 ($700,000) per month to group profit.
Mothercare revealed that the decision to suspend operations would result in a hit of up to a 25% of its usual global revenue, with shares fallen by 25% in response.
The mother and baby products specialist operates as a brand franchise operation after its UK store arm was placed in administration in 2019 to protect the wider brand business.