Weak trading at UK Mothercare stores weighed on its overall performance while international operations continued to go from strength to strength.
The UK baby-wear and toddler goods firm said total group sales fell 4.4 per cent for the 15 weeks ended 14 July 2012. UK sales declined 10.2 per cent in the quarter while International retail sales climbed 11 per cent.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The UK store restructure programme, which is targeting the largest loss-making stores first, is progressing well with a reduction of 16 stores in the quarter. We moved our Mothercare website to a new platform in May and, whilst this resulted in significant disruption during the transfer process, recent performance has been very encouraging with positive sales growth in the last five weeks," it said.
Chairman Alan Parker said: "First quarter results were in line with our overall plans despite challenging trading conditions in the UK and the Eurozone. We have made good progress implementing the three-year Transformation and Growth plan with benefits to accrue during the second half of the year, as expected."
"International growth continues to offset weaker trading in the UK," he said.
Asia Pacific and the Middle East & Africa performed well during the quarter, continuing strong levels of growth. In contrast, Europe endured a slight decline in sales.
Mothercare opened 25 stores outside the UK, taking the total overseas store numbers to 1,053 and it opened its 100th store in Saudi Arabia.
The group said it is confident on delivering its International growth targets, underpinned by forward orders and store opening plans from its franchise partners.
CJ
-
More pensioners dragged into 60% tax trap – could you be caught?Frozen thresholds are pushing more older workers into paying income tax at levels much higher than the headline rate, new figures show. We look at why and how you can avoid being caught in the 60% tax trap.
-
Higher earners face £377 bill if Reeves puts up income tax – do you fit the Treasury’s definition of ‘working people’?Labour’s election manifesto pledged not to raise National Insurance, VAT or income tax but prime minister Keir Starmer appeared reluctant to repeat the promise this week
