International Sales Storm Ahead for Mothercare

Forth quarter sales at international parent and children retailer Mothercare stormed ahead of the market. For the 11 weeks to March 28, the UK-based retailer showed international retail sales up 40 percent. Total group sales were up 5.6 percent in the period, total UK sales were up 1.3 percent, and UK like-for-likes were up 3.7 percent. Mothercare’s Direct in Home sales were up 26.7 percent in the quarter.

For the full year to March 28, international retail sales were up 44.5 percent, total group sales were up 6.9 percent, UK like-for-like sales were up 1.4 percent, total UK were sales up 2.4 percent and Direct in Home sales were up 30.6 percent, compared with the previous year.

International like-for-like sales were up 6 percent for the full year and up 4 percent in the second half.
Mothercare said it expects gross margins in 2009-10 to come under further pressure due to the weakness of sterling. This will be partly offset by currency gains in its international business.

“This is another strong performance from the Mothercare group,” says Ben Gordon, chief executive officer. “International goes from strength to strength, and we now have 1,014 stores in 51 countries worldwide.

“The UK business has now delivered 15 consecutive quarters of like-for-like sales growth. UK sales have been boosted by robust performances from the Direct business and the Early Learning Center inserts now in 84 Mothercare stores, and both brands have gained market share in the quarter. We continue to manage the business tightly to mitigate the effect of currency movements. The group remains debt-free.”

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