16th Apr 2015 07:49
LONDON (Alliance News) - Mothercare PLC Thursday reported worldwide sales growth in its fourth quarter which it said is "in line" with its plan, but cautioned that global economic and foreign currency volatility will continue to challenge the international business.
The retailer for parents and young children said worldwide sales grew 4.1% in the 11 weeks to March 28, and said international sales would have grown 11.4% had exchange rates remained constant, as currency continues to have an "adverse impact".
It said the UK is beginning to "see some benefit" from initiatives taken over the year as total sales in the region grew 1.5% and like-for-like sales rose 5.1%.
Online sales grew around 32% during the quarter, representing around 30% of total UK sales, it said, adding that gross margins are "continuing to stabilise".
"Over the last year, we have made good progress with our strategic plan. It is still early days in our turnaround, but we are putting the foundations in place by modernising and investing in our business. Our international business will continue to be challenged by ongoing global economic and foreign currency volatility and the UK will have to anniversary our new trading strategy during the year ahead," Chief Executive Mark Newton-Jones said in a statement.
Mothercare said it will release its full year results on May 21.
Shares in Mothercare were trading up 9.1% at 231.36 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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