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Mothercare Plc : 3rd Quarter Results

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MOTHERCARE PLC

Q3 trading update

 

Mothercare plc, the leading global retailer for parents and young children, today issues the following trading update, which covers the 13 week period to 10 January 2015.

Overview for Q3 - 13 weeks to 10 January 2015

Financial highlights

  • International double-digit growth with constant currency sales up 14.4% and space up 11.5%. As expected, currency devaluation has impacted reported retail sales growth
  • UK like-for-like sales up 1.1% with total UK sales down 1.9% despite space being down 4.2%
  • Multi-channel growth with UK online sales up 16.1%, representing 31.8% of total UK sales (26.9% last year)
  • UK gross margin rate continues to stabilise as a result of more full price sales, lower levels of promotional activity and delaying the end of season sale until Boxing Day
  • Worldwide sales up 2.2% with reported total Group sales down 2.9%

Operational highlights

  • Mobile continuing to grow and now accounting for 75% of UK online sessions (65% last year)
  • Q3 click-and-collect orders up 10.7% representing 36.6% of UK online orders
  • End of season sale stock 16% lower and sell through rate to date 13% better than last year
  • During the quarter, we opened 24 International stores (103 opened YTD) and closed 6 UK stores (20 closed YTD)

Group performance for 13 weeks to 10 January 2015

    13 weeks to: 41 weeks to:
    10 January 2015
    % change year-on-year
Group    
Worldwide sales (1)   2.2 0.3
Total group sales (2)   (2.9) (1.6)
International      
International retail sales in constant currencies (1)   14.4 12.6
International retail sales in actual currencies(1)   5.4 1.3
International space (change in sq.ft.)   11.5 11.5
UK  

 
   
Total UK sales   (1.9) (1.4)
Online sales   16.1 14.9
UK like-for-like sales(1)   1.1 1.3
UK space (change in sq.ft.)   (4.2) (4.2)

 

Mark Newton-Jones, Chief Executive Officer of Mothercare plc, said:

"Third quarter results are in line with our plan. Importantly, in the UK, we have continued to reduce the level of promotional activity and went into the end of season sale on Boxing Day, with less stock and later than in recent years. These actions are re-establishing Mothercare as a full price retailer and in turn stabilising our margin. In International, we have seen continued strong growth from all territories, despite the economic uncertainty in some markets.

"Whilst trading conditions remain challenging, we are continuing to make good progress on our strategic plan. Our vision is clear - to be the leading global retailer for parents and young children."

Conference call

A conference call for Analysts will be held at 09:30hrs today.


Investor and Analyst enquiries to:

Mothercare plc

Mark Newton-Jones, Chief Executive Officer

Matt Smith, Chief Financial Officer

Ramona Tipnis, Director of Investor Relations                                   01923 206455

 

Media enquiries to:

Anna Harland (Mothercare plc)

Katharine Wynne / Jonathan Sibun (Tulchan Communications)               020 7353 4200

Notes:

1 - UK like-for-like sales are defined as sales from stores that have been trading continuously from the same selling space for at least a year and include online sales. International retail sales are the estimated retail sales of overseas franchisees and joint ventures and associates to their customers. International like-for-like sales are the estimated franchisee retail sales from stores that have been trading continuously from the same selling space for at least a year. Total International sales are International retail sales plus International Wholesale sales. Worldwide sales are total International sales plus total UK sales.

2 - Group sales is a statutory number and is made up of total UK sales and receipts from our International partners, which includes royalty payments and the cost of goods dispatched to our franchise partners.

3 - This announcement contains certain forward-looking statements concerning the company. Although the Board believes its expectations are based on reasonable assumptions, the matters to which such statements refer may be influenced by factors that could cause actual outcomes and results to be materially different. The forward-looking statements speak only as at the date of this document and the company does not undertake any obligation to announce any revisions to such statements, except as required by law or by any appropriate regulatory authority.

4 - Overall space was up 5.1% year-on-year at the end of the third quarter with space in the UK down 4.2% year-on-year and International space up 11.5% year-on-year.

 

Space (k sq.ft.) Q1 FY2014 Q2 FY2014 Q3 FY2014 Q4 FY2014
UK 1,770 1,770 1,760 1,737
International 2,430 2,505 2,610 2,656
Total 4,200 4,275 4,370 4,393
Stores (#) Q1 FY2014 Q2 FY2014 Q3 FY2014 Q4 FY2014
UK - Mothercare 192 191 191 189
UK - ELC 50 46 40 31
Total UK 242 237 231 220
International - Mothercare 745 766 801 819
International - ELC 371 390 400 402
Total International 1,116 1,156 1,201 1,221
Total 1,358 1,393 1,432 1,441

 

 

Space (k sq.ft.) Q1 FY2015 Q2 FY2015 Q3 FY2015 Q4 FY2015
UK 1,728 1,702 1,686  
International 2,753 2,828 2,907  
Total 4,481 4,530 4,593  
Stores (#) Q1 FY2015 Q2 FY2015 Q3 FY2015 Q4 FY201
UK - Mothercare 186 183 180  
UK - ELC 25 23 20  
Total UK 211 206 200  
International - Mothercare 854 878 904  
International - ELC 411 422 420  
International 1,265 1,300 1,324  
Total 1,476 1,506 1,524  

 




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Mothercare Plc via Globenewswire

HUG#1887118

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