Mothercare sales dip as international business lags
Mothercare reported a drop in fourth-quarter and full-year sales on Thursday, mostly due to a weaker performance in the international business.
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International retail sales at constant currency were down 1.7% but up 15.4% in actual currency in the fourth quarter, reflecting ongoing currency headwinds. In the 52 weeks to 25 March, sales were down 2.4%.
Mothercare said many international markets are now in growth, with strong sales in China, Indonesia and Russia supported by currency tailwinds. However, the Middle East remains challenging.
It has launched ten new websites this year, bringing its total to 21 countries now trading online.
In the UK, total sales were up 3.2% in the final quarter but down 0.1% for the year. UK like-for-like sales were up 4.5% in the quarter, driven by online sales growth of 13.6%.
Total group sales were 12.2% lower in the fourth quarter and 2.2% lower for the year.
Chief executive Mark Newton-Jones said: "Following a solid final quarter, our overall group performance remains broadly in line with market expectations for the year.
"We have made further progress in the period, with the UK performing particularly well on a like-for like basis. Customers' response to our spring/summer ranges has been positive, as has the feedback on the new website and our new store environment; over the past two years we have successfully refurbished 70% of the store estate to our new, modern format. Our customer database now stands at over three million active customers, allowing us to communicate seamlessly between our digital and physical channels."
At 0914 BST, the shares were up 2% to 116.49p.