Nursery Today magazine

Mothercare profits up 112 per cent

Mothercare, over the first half of the year, built on the progress they made last year.

The UK business is benefitting from their strategic initiatives with much stronger gross margins and like-for-like sales growth. In International they and their franchisees continue to grow space and invest for the future despite economic and currency headwinds. They remain singularly focused in our goal of being the leading global retailer for parents and young children.

Mark Newton-Jones, Chief Executive of Mothercare plc, said: "We are a year into our turnaround; making good progress against each of our strategic pillars and as a result underlying profits for the first half have more than doubled.

"Our work to return the UK business to profitability continues to pay off, with growth in both gross margins and like-for-like sales. Improved product architecture, better buying and a focus on full price retailing helped drive the stronger margin growth. Our new store format is going down well with customers, and these refurbished stores are delivering encouraging uplifts in both sales and profit. The UK is annualising against our new trading approach and is performing well; but there is still more work to do.

"We continue to lay the foundations for future growth in our International business. Despite increased economic and currency headwinds in a number of our markets, impacting both sales and profits, we and our franchise partners remain confident in the business model and together continued to grow space. We expect the challenging environment to continue into the second half.

"Overall, expectations for the full year out turn are unchanged. Our vision remains clear: to be the leading global retailer for parents and young children."

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