Mums-to-be retailer Mothercare shows rising profits
Global baby retailer Mothercare has reported a 5.6% rise in total group sales in the last quarter.
Global mother and baby chain Mothercare has reported good fourth quarter results, showing a 5.6% rise in total group sales.
Synonymous with parenting and children’s products, Mothercare plc has now seen 15 quarters of consecutive growth in the UK, and results for both the last quarter and full year show a strong performance in-store and online.
Like-for-like UK sales in the 11 weeks to 28 March rose 3.7%, while international sales surged 40%. Same-store UK sales for the full year rose 1.4% as the firm said it had also been boosted by its home shopping business, up 30.6% over the year.
Mothercare is protected somewhat from the tough economic climate, for the pure reason that its product range will always be in demand, but the company is equally bolstered by its steady and efficient growth management.
Formerly from Disney Europe, Ben Gordon, Mothercare’s Chief Executive, said: “This is another strong performance from the Mothercare group. International goes from strength to strength, with retail sales up 40%. We now have 1,014 stores in 51 countries worldwide.
“UK sales have been boosted by robust performances from the Direct business and the Early Learning Centre (ELC) 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.”
The company also commented that although the UK gross margin was in line with expectations, “for 2009/10, we expect gross margins to come under further pressure due to the weakness of Sterling; however, we expect this to be partly offset by currency gains in International.”
