Mothercare upbeat over recovery
Mothercare said it was on a “firmer footing” today after jettisoning loss-making stores and posting better-than-expected sales figures.
The group, which is 12 months into a three-year restructuring plan, overcame snow-bound conditions to report flat UK like-for-like sales in the 11 weeks to March 30, compared with a decline of 6% in the previous quarter.
It has shut 56 poorly-performing stores in the past year, with the loss of 7% of its trading space offset by much stronger internet sales after Mothercare’s Direct in Home operation grew revenues 18.2% in the period.
The company now trades from 255 stores, including 59 Early Learning Centre outlets, under a plan to have a 200-strong estate by 2015.
Mothercare’s turnaround plan, overseen by chief executive Simon Calver, also focuses on driving international expansion.
The overseas division opened another 115 stores and increased space by 13.5% in the last year, while sales were up 15.5% in the quarter to the end of March.
Mr Calver said there was still much to do but that the group was now on a firmer footing.
He added: “Mothercare has continued to make progress both in the UK and across its international businesses.”
Shares were up 7% after today’s UK sales figure came in ahead of expectations.
Matthew McEachran, a retail analyst at N+1 Singer, said: “Given the adverse snow in January and freezing spring conditions, we had feared like-for-like sales would be down 3-4%, so this performance is very reassuring.”
