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.
UK Direct in Home sales were down 7.1% and UK like-for-like sales dropped 6.7%.
Subscribe to 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
-
UK house prices rose 6.4% over the past 12 months – will there be a property market surge?The Land Registry house price index reveals the average property price reached £271,000 in March. Some experts think this could be a ‘new growth phase’
-
Angela Rayner secret tax memo to Rachel Reeves: could these tax hikes become a reality?As details emerge of a memo sent by Rayner to Reeves calling for a £4 billion tax raid on savers and investors, experts fear some of them might make an appearance in the Autumn Budget
