Mothercare plc (LON:MTC) has reported a 12.2% drop in total group sales in the fourth quarter as a weak performance in its international business offset growth in the UK.
The retailer, which specialises in products for expectant mothers and children up to age eight, said international sales in constant currency fell 1.7% in the 11 weeks to 25 March 2017.
Including the benefits of a weaker pound, international sales jumped 15.4%.
While the international division saw strong sales in China, Indonesia and Russia, Mothercare said economic conditions in the Middle East remained challenging.
The company opened 144 stores and closed 116 abroad, ending the quarter with 1,338 stores, marking a 0.9% increase in space by square footage.
In the UK, total sales rose 3.2% and on a like-for-like basis gained 4.5%, driven by online sales growth of 13.6%. Online sales account for 41% of UK sales.
The group ended the quarter with 152 stores in the UK, a 5.9% decrease in space.
Chief executive Mark Newton-Jones said UK customers responded well to the group’s spring and summer ranges as well as the new website. Over the past two years the company has refurbished 70% of its stores and the customer database now has more than three million people, he said.
“Following a solid final quarter, our overall group performance remains broadly in line with market expectations for the year,” Newton-Jones added.
“We continue to export our learnings from the UK and as a result, have launched 10 new websites this year, bringing our total to 21 countries now trading online. We still see many opportunities in existing and new markets around the world that are open to us.”
In the year to date, total sales have fallen 2.2% with a 2.4% drop in international retail sales at constant currency and a 0.1% dip in UK sales. On a like-for-like basis UK sales in the year to date grew 1.1% while online sales edged up 7.8%.
Mothercare is reportedly reviewing its remuneration policies for directors following a turbulent year. The Sunday Times reported that the group will lower its bonus targets to make it easier for executives to earn their share awards.