Retail Sales Overview - U.S. retail sales increased by 0.1% in April following a revised 1.7% increase in March, contrary to economists' expectations of no change [1] - The March increase was influenced by consumers making purchases in anticipation of tariff announcements [1] Sector Performance - The largest increases in April were in food services and drinking places (1.2%), building material and garden equipment supplies (0.8%), furniture (0.3%), and electronics and appliances stores (0.3%) [2] - Sales excluding food services, auto dealers, building materials stores, and gasoline stations decreased by 0.2%, below the revised 0.5% gain in March and forecasts of a 0.3% rise [2] Winning Areas Food Services and Drinking Places - Sales in this sector rose by 1.2% sequentially in April and 7.8% year over year [4] - AdvisorShares Restaurant ETF (EATZ) focuses on companies deriving at least 50% of their revenue from the restaurant business [4] - BJ's Restaurants (BJRI) operates high-end casual dining restaurants and has a Zacks Rank 1 (Strong Buy) [5] Building Material & Garden Equipment & Supplies Dealers - This segment experienced a 0.8% sequential sales gain and a 3.2% year-over-year increase [6] - Broad-based retail ETFs like Consumer Discretionary Select Sector SPDR ETF (XLY) and VanEck Retail ETF (RTH) are relevant for this sector [6] - Vulcan Materials (VMC) is the largest supplier of construction aggregates in the U.S. and has a Zacks Rank 2 (Buy) [7] Electronics & Appliance Stores - Sales in this category increased by 0.3% sequentially in April and 0.1% year over year [8] - The rise in electronics sales is expected to benefit semiconductor funds and stocks [8] - VanEck Vectors Semiconductor ETF (SMH) tracks companies involved in semiconductor production and charges 35 bps in fees [8] - Universal Electronics (UEIC) is a leader in universal control and sensing technologies for smart homes and has a Zacks Rank 3 [9]

Core Viewpoint - Mothercare plc is experiencing significant challenges due to ongoing uncertainties in the Middle East, impacting its franchise partners and overall financial performance, with a notable decline in retail sales and adjusted EBITDA for FY25 compared to the previous year [2][4][12]. Financial Performance - Adjusted EBITDA for FY25 is expected to be approximately £3.5 million, a decrease from £6.9 million for the period to March 2024, primarily due to the impact of Middle Eastern market conditions [4][12]. - Unaudited net worldwide retail sales by franchise partners were £231 million, down from £281 million in the previous financial year, reflecting an 18% decline [5][12]. - The decline in sales is largely attributed to the Middle East and the UK, where the company is ending its exclusive distribution relationship with Boots at the end of 2025 [5][12]. Market Conditions - The underlying strength of the business is indicated by positive like-for-like retail sales outside the UK, despite global economic uncertainties [6]. - Many franchise partners are still clearing inventory due to suppressed demand during Covid-19, which is expected to continue affecting results into FY26 [7]. Pension and Financing - Annual contributions for the Staff Scheme for the year to March 2026 are set at £3 million, with the first six months' payments deferred to support cash flows while exploring growth opportunities [8]. - At year-end, the company had total cash of £4.4 million, down from £5.0 million in March 2024, and net borrowings reduced to £3.7 million from £14.7 million [10][12]. Strategic Outlook - The company is focused on supporting franchise partners and exploring growth opportunities through partnerships and product development [13][14]. - Discussions with potential strategic partners are ongoing, indicating interest in the brand despite current market challenges [14].