22nd Oct 2015 07:44
LONDON (Alliance News) - Mothercare PLC Thursday said trading for the full year is in line with its expectations as it reported a drop in sales in the second quarter of its financial year.
The retailer for parents and young children said total group sales fell 7.1% in the 23 weeks ended October 10, as a 2.8% decrease in worldwide sales and 5.3% decline in international retail sales offset 6.5% growth in UK like-for-likes.
Mothercare said that the sales declines reflected ongoing store closures in the UK as well as headwinds from unfavourable foreign exchange rates for the international business, but that growth in UK like-for-likes was helped by its digital strategy of growing online sales and by delaying its end-of-season sale into the second quarter.
The company grew online sales by 20%, closed 10 stores in the UK, opened three stores and refurbished six stores. It added 20% of stores will be refurbished before Christmas.
Meanwhile, international space grew 6.6% year-on-year with the opening of 11 stores. Had currencies remained constant, Mothercare's international business would have grown sales by 5.6%.
"The second quarter results are in line with our full-year expectations. The UK is continuing to benefit from our strategic initiatives both online and in store, while International has seen the expected improvement in trading. Whilst International markets remain volatile, our franchise partners continue to have confidence and have added further space during the period. However, foreign currency continues to be a significant headwind," Chief Executive Mark Newton-Jones said in a statement.
"These results give us further confidence in our strategy, but there is much more to be done. Our vision remains clear - to be the leading global retailer for parents and young children," he added.
Shares in Mothercare were trading up 3.6% at 231.00 pence early Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Mothercare