Mothercare reduces losses in the UK, sales rise 6.3 percent

Worldwide sales at Mothercare for the year ended March 25, 2017, were up 6.3 percent at 1,222 million pounds (1,582 million dollars) with total UK sales down 0.1 percent to 459 million pounds (594 million dollars) but UK like-for-like up 1.1 percent. Total International sales increased 10.6 percent to762.5 million pounds (987 million dollars). Group sales were down 2.2 percent at 667 million pounds (864 million dollars), which the company attributed to lower shipments to its partners.

Commenting on the company’s performenace, Mark Newton-Jones, Chief Executive of Mothercare said in a statement, “We are now in the third year of our turnaround and I am pleased to report that we have achieved much of what we set out to do from our six pillar strategy introduced in 2014. Following a difficult start to the year, the UK recovered in the second half, returning to underlying profit for the first time in six years. We have launched ten new websites globally, bringing our total to 21 countries now trading online.”

Losses in UK reduced by 31 percent

Despite the decline in Group sales, underlying group profit before tax was up 1 percent to 19.7 million pounds (25.5 million dollars). The UK reduced losses by 31 percent to 4.4 million pounds (5.6 million dollars), making an underlying profit in the second half of 4.4 million pounds, while international profits were down 13 percent to 35.2 million pounds (45 million dollars).

Basic earnings per share were 4.8 pence compared to 3.8 pence in 2015/16 and basic underlying earnings per share were 9.7 pence compared to 9.6 pence last year.

The company now trades from 1,302 stores in 55 countries across the world. In the UK, total retail space reduced 5.9 percent and Mothercare ended the year with 152 stores in the region. International expansion continued and total space grew 0.9 percent. The company operated 1,150 international stores at the year-end.

Picture:Mothercare website