MOTHERCARE PLC

Q1 trading update

Mothercare plc, the leading global retailer for parents and young children, today issues the following trading update, which covers the 15 week period to 11 July 2015.

Overall trading is in line with expectations with the UK making a good start to the year and International seeing some macro volatility as anticipated.

International highlights

• International space up 8% year-on-year despite the c2% reduction during Q4 last year which reflects the closure of some ELC concessions within department stores. International now trading from 1,299 stores and 2.97m sq.ft. of retail space
• International retail sales down (1.3)% in constant currency as increased levels of economic risk impact consumer confidence. Currency headwinds further impacted international retail sales in actual currencies which were down (4.8)%
• Asia and Europe both saw growth in constant currencies with Latin America and the Middle East weaker. The Middle East has been impacted by a reduction in markdown and discount activity and the delay into Q2 of the end-of-season sale which is after Ramadan and Eid

UK highlights

• UK continuing to benefit from strategic initiatives with gains in gross margin, online sales growth of 24% and like-for-like sales growth of 1.3%
• Reconfiguration of UK space continuing in line with expectations with space reduced by 5.3% year-on-year and a number of newly refurbished stores opened across various locations. UK now trading from 180 stores and 1.64m sq.ft. of retail space
• iPads rolled out to all stores, allowing our teams to show customers our richer online content of photography, videos and customer reviews

Group highlights

• Worldwide sales down (3.5)% and Total Group sales down (5.2)% reflecting ongoing store closures in the UK and macro headwinds seen in our International business

Group performance for 15 weeks to 11 July 2015

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

"Overall our trading is in line with expectations with the UK making a good start to the year and International seeing some macro volatility as anticipated."

"Trading across our International business has been more volatile as we have previously highlighted with increased macro headwinds impacting consumer confidence in a number of our markets. Despite this our International partners are building on the strong foundations already in place by continuing to open new space, positioning us well for the future when the outlook improves."

"Our strategy in the UK is continuing to deliver results. We have delayed the end of season sale to take advantage of well controlled stock and the warm weather to sell more at full price. As a result margins are improving without adversely affecting like-for-like sales. Online has also benefited from lower discounts and promotions with the additional benefit of improved functionality. The early results from the store refurbishment programme and the additional investment into service both online and in store are encouraging."

"It is still early days in our turnaround and we recognise that there is still much to do. Our vision remains clear - to be the leading global retailer for parents and young children."

Investor and Analyst enquiries to:

Mothercare plc

Mark Newton-Jones, Chief Executive Officer

Richard Smothers, Chief Financial Officer

Ramona Tipnis, Director of Investor Relations                                    01923 206455

Media enquiries to:

John Olsen/Simon Hockridge (MHP Communications)                           020 3128 8789

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 2.8% year-on-year at the end of the first quarter with space in the UK down 5.3% year-on-year and International space up 7.9% year-on-year.