Mothercare's UK sales dip amid challenging environment

Mothercare half year sales to October 8, 2016, were up 3.8 percent at 637 million pounds (791 million dollars) with total UK sales down 2.3 percent, while total international sales up 7.7 percent. Group sales, which reflect the company’s UK sales and reported revenues or receipts from international partners, were down 0.6 percent at 348 million pounds (432 million dollars).

Commenting on the first half performance, Mark Newton-Jones, Chief Executive of Mothercare said in a statement, “We are continuing to make major changes in the business. We have refurbished 60 percent of our UK store estate, upgraded our distribution and online capabilities and completed the bulk of the unprofitable store closure programme. While conditions in the first half have been challenging, the second half has started in line with our plans and the business is well prepared for the important peak season.”

Continues retail expansion in international markets

Underlying group profit before tax was down 15.7 percent at 5.9 million pounds (7.3 million dollars). UK losses increased to 8.8 million pounds (10.9 million dollars), while international profits were 20.8 million pounds (25.8 million dollars).

Global retail space across all Mothercare markets was 0.6 percent year on year with the UK declining by 1.7 percent and international up 1.8 percent. The company now have 166 stores in the UK and 1,339 stores in 56 countries. International like-for-like sales were down 2.9 percent with Europe, Russia, Middle East and Asia, all weaker, while UK posted a decline of 0.7 percent.

While markets are still volatile, The company said many countries including China, have now returned to growth. The company added net 29 stores in the international markets and 84 new stores with its partners, while closing 55. International e-commerce sales grew by 46 percent or 26 percent in constant currency, in the half. Mothercare launched websites in three new countries: Malaysia, Belarus and Turkey during the period and now have 14 markets internationally online.

Picture:Mothercare