14th Jul 2016 07:17
LONDON (Alliance News) - Mothercare PLC on Thursday reported a fall in sales in the first quarter of its financial year as the UK once again underperformed its international business, and it said it expects to see limited impact from Brexit during the full year.
The retailer for mothers and children said total group sales in the 15 weeks ended July 9 fell by 1.7% year-on-year, as 5.1% growth in the international business failed to offset a 2.1% decline in the UK.
Sales in the UK were hit by a 4.8% year-on-year reduction in space and as the end-of-season sale was brought forward by one week to clear stock following adverse weather. UK like-for-like sales, however, did grow 1.2%, as UK online sales rose 6.4%.
The international business, meanwhile, achieved foreign exchange gains in the Middle East and Asia, while the earlier timing of Ramadan also helped. Mothercare did say though that it remains cautious and expects to see volatility during the first half in the international business.
"We have not seen any immediate consumer reaction to the Brexit vote, but it is too early to call as we went into the end-of-season sale early. We hedge both dollar purchases and royalty receipts and we expect limited impact on our financial results this year," Chief Executive Mark Newton-Jones said in a statement.
Mothercare said it will release its first-half results on November 24.
Shares in Mothercare were trading up 2.4% at 138.50 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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