Mothercare Q3 like-for-like sales rise 4.2 percent

Mothercare in its statement covering the 13 week period to January 9, 2016 said that UK like-for-like sales were up 4.2 percent, benefiting from online sales growth of 11.8 percent. International retail sales were down 1.3 percent in constant currency and down 9.5 percent in actual currency, reflecting ongoing economic and currency headwinds.

According to Mark Newton-Jones, Chief Executive Officer of Mothercare, “Overall Group performance remains in line with market expectations, with our UK performance further improving and International continuing to be challenging. We maintained our full price approach and entered the end-of-season sale after peak trading, albeit with higher stock levels as a result of the unseasonably warmer weather. We remain firmly focused on our strategy to build our businesses both in the UK and internationally.”

Highlights of the third quarter results

Gross margin in the UK was preserved despite the unseasonably warm weather which led to higher stock and a deeper end-of-season sale. The company continued to reconfigure the store portfolio and had 41 stores refurbished and ended the period with 172 stores (164 Mothercare and eight ELC). Total UK sales were down 0.1 percent as improved online and store performance.

All four International regions benefitted from space growth. Europe, Asia and Latin America saw retail sales growth in constant currencies with the Middle East weaker than last year. International space continuing to develop with the opening of larger stores. The company added 12 stores during Q3.