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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Mothercare does well overseas but currency headwinds weigh

Baby goods retailer lifted International retail sales by 5.6%

Shares in baby goods retailer Mothercare (LON:MTC) rose 8.25p to 231.25p on news of higher UK and international sales.

The UK high street chain, which now does much of its business abroad, said international retail sales in constant currency rose 5.6% in the 13 weeks to October 10.

They benefited from the delayed end-of-season sale into the second quarter due to the timing of religious events Ramadan and Eid.

Currency headwinds continued to hit retail sales in actual currencies, which fell 5.3%.

Sales in Europe, the Middle East and Latin America rose in constant currencies, but Asia was weaker than last year

Mothercare said its UK business boosted like-for-like sales by 6.5% due to a 20.4% rise in online sales and a delayed end-of-season sale.

Worldwide sales fell 2.8% and total group sales backtracked 7.1% reflecting ongoing store closures in the UK and foreign currency headwinds in the international business

Chief executive Mark Newton-Jones said: "The second quarter results are in line with our full year expectations. The UK is continuing to benefit from our strategic initiatives both online and in store, while International has seen the expected improvement in trading.

"Whilst international markets remain volatile, our franchise partners continue to have confidence and have added further space during the period. However, foreign currency continues to be a significant headwind.

"In the UK our digital strategy resulted in strong double-digit growth of online sales, which in turn contributed to the growth in like-for-like sales. Our improved and exclusive product ranges in home & travel and clothing & footwear are supporting our full-price trading approach.

"As a result we were able to go into our end-of-season-sale with less product at discount and so delay the start of the sale until the second quarter. With Christmas now quickly approaching, we're gearing up to our peak trading period.

"These results give us further confidence in our strategy, but there is much more to be done."

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