Mothercare sales decline on weak UK performance

Baby and maternity retailer Mothercare reported on Thursday a decline in sales following poor performance at UK stores.

Baby and maternity retailer Mothercare reported on Thursday a decline in sales following poor performance at UK stores.

The group posted a 7.4% drop in total group sales for the 13 weeks ended on January 12th.

UK stores were the biggest contributor to the fall with a 12.9% decrease, as recent improvements to its British arm failed to pull in Christmas sales and the company closed 11 shops.

Mothercare has been scaling back stores in the UK as part of a restructuring plan to cut losses. It now has 269 stores, compared with 311 last April.

International sales, on the other hand, rose 14.8% over the same period following growth in overseas markets.

Chief Executive Simon Calver, said: "We have made solid progress during the third quarter, despite a challenging consumer backdrop for the UK and Eurozone.

"International continues to see double-digit growth and in the UK we have made further progress closing loss making stores."

He said the its retail website passed the test of peak trading at double the rate in December.

"Our work towards delivering improved value, choice and service for our customers continues to make an impact and I am very encouraged by the new ranges and innovative product ready to go into stores for spring/summer 2013."

Shares fell 2.88% to 295.50p at 11:15 Thursday.

RD

Recommended

Britain’s most-bought shares w/e 1 July
Stocks and shares

Britain’s most-bought shares w/e 1 July

A look at Britain’s most-bought shares in the week ending 1 July, providing an insight into how investors are thinking and where opportunities may lie…
4 Jul 2022
M&G offers a solid 10.1% yield – but future growth is uncertain
Share tips

M&G offers a solid 10.1% yield – but future growth is uncertain

Financial services group M&G has one of the highest dividend yields in the FTSE 100. But it’s a complicated company, and a tough one to analyse, says …
4 Jul 2022
How to boost your income as dividends come back in fashion
Income investing

How to boost your income as dividends come back in fashion

Dividends are back in fashion. But how do you go about building an income-generating portfolio?
4 Jul 2022
Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
How to invest in copper, the most important metal in the world
Industrial metals

How to invest in copper, the most important metal in the world

As the world looks to electrify and try to move away from fossil fuels, copper looks set to be the biggest beneficiary. But how can you invest? Rupert…
30 Jun 2022