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Mum's the word as Mothercare recovers

Oct 15 2004

Birmingham Post

 

Mothercare reported a dip in its sales revival, but said it remained confident ahead of the key Christmas season.

The group said like-for-like sales in the 13 weeks since July fell 0.2 per cent after a challenging late summer period upset its recent positive sales record.

Mothercare pointed out that poor weather had deterred shoppers and that the result was up against strong figures last year. It also said sales had improved following a warm reception for its autumn and winter ranges.

Across the 28 weeks to October 9, Mothercare said like-for-like sales in its UK stores rose 2.4 per cent, slowing from the 6.4 per cent rise it reported a year ago.

The group recently returned to the black after sliding £24.8 million into the red in 2003. Mothercare has benefited from a three-year turnaround strategy that has seen 50 per cent of its high street space refitted, improved product ranges and cost cutting at its distribution arm.

"The refitted stores continue to perform ahead of the rest of the chain and are achieving our target return on investment," the company said. Mothercare's new out-of-town store in Thurrock opened in August and is performing ahead of expectations.

One new high street store and another out-of-town store are scheduled to open next month.

The group also said its international business continued to perform well, with its franchise partners opening 12 new stores in the first half, taking the total to 200 stores in 31 countries worldwide.

While Christmas is a key seasonal trading period for many retailers, Mothercare's products, such as nursery equipment, maternity wear and pushchairs are year-round purchases.

Ben Gordon, chief executive, said: "The successful transformation of Mothercare continues, with sales up by almost nine per cent over a two-year period.

"Our autumn and winter ranges have been well received and we approach the important Christmas season with confidence."

Analysts expect the retailer, in the second year of its three-year turnaround, to post a first-half pretax profit of around £10 million and £21 million in the year to the end of March.

Mothercare is to publish interim results on November 18.

 

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