14th Apr 2016 06:57
LONDON (Alliance News) - Mothercare PLC on Thursday said its saw a further improvement in trading in the UK in the 11 weeks to March 26, though international sales remained under pressure.
Mothercare, which sells products for parents and young children, said its UK like-for-like sales grew 2.1% in the period from the year before, helped by 5.6% growth in online sales. Gross margins also improved in the UK as the company focused on full-price sales over promotions and discounting.
Total UK sales grew 0.8%, Mothercare said, despite the group's selling space falling 6.4% as it rationalises its store portfolio.
The international business, however, remains under pressure from a tough economic environment and adverse currency moves. International retail sales were down 9.7% at constant currency, Mothercare said, and down 10.8% at actual exchange rates.
Middle East sales were hit by consumer sentiment taking a knock from the fall in the oil price, while weakening consumer confidence also sapped sales in China.
Mark Newton-Jones, Mothercare's chief executive, said overall underlying profit for the year to March 26 was in line with market expectations.
"The UK is responding well to our strategy with continued sales growth and improved margins. International continues to be impacted by adverse currency and weakening consumer confidence in some key markets as economic headwinds persist," he said.
"In the year ahead, we expect to make further progress in the UK. However, our international markets are likely to remain challenging with the current trends in space, sales and currency continuing into the new financial year. Nevertheless we remain firmly focussed on our strategy to build our business both in the UK and internationally and our vision remains clear - to be the leading global retailer for parents and young children," Newton-Jones said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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