Mothercare sales growth continues
Mothercare indicated today that new mums were continuing to spend on the needs of their babies despite evidence of penny-pinching elsewhere on the high street.
The babycare retailer said like-for-like sales at its UK stores grew by 0.2% in the 12 weeks to April 1, or 1.2% if the figures are adjusted for the late timing of Easter this year.
This means Mothercare is on target to meet expectations for margins and profits, with a consensus of analysts looking for a surplus of £19.8m (€28.2m), compared with £19.6m (€27.9m) last year.
Chief executive Ben Gordon said: “The resilience of the UK business in a difficult trading environment reflects the actions taken to develop Mothercare’s position as a specialist multi-channel retailer.”
Its direct-selling operation posted strong growth, contributing to total sales in the UK rising 2% over the past 12 weeks.
However, Mothercare joined a throng of retailers that includes Next and Woolworths that expect there to be no improvement in tough trading conditions until at least the summer.
The company said the overall market would remain challenging in the coming months and it faced rent increases, a higher payroll and rising utility bills.
Ahead of its annual results, Mothercare said like-for-like sales in the UK were likely to be 0.3% lower over the 53 weeks to April 1, although total sales should be 1.5% ahead.
A strong performance overseas, where total sales were 20.1% higher in the same period, meant growth across the group was expected to be 3.7%.
