NEWS

Mothercare reports a half-year loss as sales fall

Published on: 24th November 2016

The baby goods retailer has blamed unseasonal weather and warehouse changes for the figures.

Mothercare-480The company has reported a fall in half-year profits and like-for-like sales following “difficult trading conditions”.

It has reported a loss of £800,000 for the six months to 8th October, compared to a profit of £5.8m last year. UK sales at Mothercare dropped 2.3% to £231.2m in the 28 weeks to 8th October year on year, and underlying profit before tax fell 15.7% to £5.9m. Total losses in the UK racked up to £8.8m, from £6.1m in the same spell last year. It said that the unseasonal weather during spring and summer led to bigger price cuts in order to shift stock.

CEO Mark Newton-Jones commented: “The last six months have been challenging and, not withstanding our progress with our strategic pillars, our sales and margin stalled in the period”.

International sales, however, grew 7.7% compared to sharp declines towards the end of last year, as the company extended its digital sales push beyond the UK.

Mothercare is currently in the process of a turnaround plan that has seen it move many high street shops out of towns and close loss-making branches. It opened 84 new stores globally, an addition of 29 after closures.

Reportedly, 40% of sales are now accounted directly to online, with 80% of those coming from mobile devices.

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