23rd Jul 2015 07:13
LONDON (Alliance News) - Mothercare PLC Thursday said that overall trading in the first quarter of its financial year was in line with expectations as the UK made a "good start" but International was hit by some macro volatility.
The retailer for parents and young children said that worldwide sales fell 3.5% in the 15 weeks to July 11, as total group sales fell 5.2%, reflecting ongoing store closures in the UK and macro headwinds in the International business.
International retail sales declined 4.8% in the period, while total UK sales decreased 0.9%, although UK like-for-likes grew 1.3% and online revenue rose 23.9%.
"Trading across our International business has been more volatile as we have previously highlighted with increased macro headwinds impacting consumer confidence in a number of our markets. Despite this our International partners are building on the strong foundations already in place by continuing to open new space, positioning us well for the future when the outlook improves," Chief Executive Mark Newton-Jones said in a statement.
"Our strategy in the UK is continuing to deliver results. We have delayed the end of season sale to take advantage of well controlled stock and the warm weather to sell more at full price. As a result margins are improving without adversely affecting like-for-like sales. Online has also benefited from lower discounts and promotions with the additional benefit of improved functionality. The early results from the store refurbishment programme and the additional investment into service both online and in store are encouraging," he added.
Shares in Mothercare were trading down 8.2% at 263.50 pence at the open on Thursday, the worst performer in the FTSE All-Share.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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