Q1 trading update
Mothercare plc, the leading global retailer for parents and young children, today issues the following trading update, which covers the 15 week period to 11 July 2015.
Overall trading is in line with expectations with the UK making a good start to the year and International seeing some macro volatility as anticipated.
International highlights
International space up 8% year-on-year despite the c2% reduction during Q4 last year which reflects the closure of some ELC concessions within department stores. International now trading from 1,299 stores and 2.97m sq.ft. of retail space
International retail sales down (1.3)% in constant currency as increased levels of economic risk impact consumer confidence. Currency headwinds further impacted international retail sales in actual currencies which were down (4.8)%
Asia and Europe both saw growth in constant currencies with Latin America and the Middle East weaker. The Middle East has been impacted by a reduction in markdown and discount activity and the delay into Q2 of the end-of-season sale which is after Ramadan and Eid
UK highlights
UK continuing to benefit from strategic initiatives with gains in gross margin, online sales growth of 24% and like-for-like sales growth of 1.3%
Reconfiguration of UK space continuing in line with expectations with space reduced by 5.3% year-on-year and a number of newly refurbished stores opened across various locations. UK now trading from 180 stores and 1.64m sq.ft. of retail space
iPads rolled out to all stores, allowing our teams to show customers our richer online content of photography, videos and customer reviews
Group highlights
Worldwide sales down (3.5)% and Total Group sales down (5.2)% reflecting ongoing store closures in the UK and macro headwinds seen in our International business
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