Nursery Today magazine

Boost with online sales growth

Mothercare plc have issued their trading update, which covers the 13 week period to 7th January 2017.

Mother have announced that UK like-for-like sales were up 1.0% during the quarter, benefiting from online sales growth of 5.5%. Online sales now represent c40% of UK sales with total UK sales up 0.6%. Margin remains within their guidance for the full year 

International retail sales were down c6% in constant currency and up c13% in actual currency, reflecting the ongoing currency tailwinds. Mixed performance continues in International with China and Russia returning to growth and the Middle East remaining challenging. They opened 40 stores and closed 28, ending the quarter with 1,351 stores and 3.1M sq.ft. of retail space.

Mark Newton-Jones, Chief Executive Officer of Mothercare plc, said: "Overall Group performance remains in line with market expectations.

"The UK returned to growth following the challenging summer trading period. We maintained our focus on product improvement and full price sales while prudent stock management allowed us to enter the end-of-season-sale after peak trading with less stock than last year. Margin remains within our guidance for the full year.

"International continues to benefit from currency tailwinds, however underlying performance continues to be mixed in spite of many markets returning to growth.  Both China and Russia improved, while the Middle East continues to be challenging. We are working closely with our International partners to modernise their businesses while at the same time see many opportunities in both new and existing markets around the world.

"We remain firmly focused on our strategy to build our businesses both here in the UK and internationally and our vision remains clear - to be the leading global retailer for parents and young children."

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