Mothercare sees UK improvement, challenges abroad in Q4

By

Cajsa Lykke Carlson

Published
Apr 14, 2016

British maternity and kidswear retailer Mothercare has announced its results for the fourth quarter.

The company said it saw further improvement in the UK, where like-for-like sales rose 2.1% in Q4. They were supported by online sales, which were up 5.6% and now account for 35% of UK sales, up from 30% in the same period last year.

Mothercare said it continued to focus on full price sales, which led to another quarter of stronger gross margins, and total UK sales were up 0.8%. The company ended the quarter with 170 UK stores (162 Mothercare and eight ELC), of which 56 were trading in its new modern refitted format.

International sales continued to be affected by ongoing economic and currency headwinds. Sales fell in all regions, with retail sales in constant currency down 9.7%. The retailer increased international space by 4.6% and ended the quarter with 1,310 stores (947 Mothercare and 363 ELC.)

CEO Mark Newton-Jones said: “Overall group underlying profit for the full year 2016 is within the range of current 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 added: “In the UK we have delivered our eighth consecutive quarter of positive like-for-like sales growth with a full year of improved margins. Almost 40% of space is now in the new and much improved format, which along with a revamped online offer, improved product and service are being well received by our customers."

“International continues to be adversely affected by the sustained economic and currency headwinds. Whilst all four regions are softer, the Middle East and China in particular have been impacted by weaker consumer confidence."