NEWS

Shares in Mothercare increase after rise in UK sales

Published on: 23rd October 2015

The retailer’s shares have risen after it reported a rise in UK sales, boosted by online growth.

mothercare480According to the BBC, like-for-like sales at the company rose 6.5% in the 13 weeks to October, helped by a 20.4% rise in online sales.

Internationally, sales were hit by currency headwinds prompting global sales to fall 2.8% in the period.

“The second quarter results are in line with our full year expectations,” said chief executive Mark Newton-Jones. “The UK is continuing to benefit from our strategic initiatives both online and in store, while international has seen the expected improvement in trading.”

Mothercare’s shares were up 3.6% at 230.25p in early trading as a result of the update.

The company’s international sales rose 5.6% in constant currencies, helped by an end of season sale which was delayed due to the timing of Ramadan and Eid.

However, total group sales were down 7.1%, partly as a result of ongoing store closures as well as the fall in international sales.

Exchange rate fluctuations meant that in actual currencies, Mothercare’s international sales dropped 5.3% during the second quarter.

Mothercare’s refurbishment programme will see 20% of UK stores modernised before Christmas.

During the quarter, Mothercare’s international business saw the opening of 11 stores. The company now has 1,310 stores, 173 of which are in the UK.

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