Mothercare enjoys stronger sales
Children’s retailer performing ahead of expectations
October 8 2003
Mothercare has seen its recovery programme generate strong sales and expects its first half performance to be ‘substantially ahead of market expectations’.
In the 27 weeks to October 4, total UK store sales increased by 4 per cent, with like-for-likes up 6.6 per cent. Mothercare had suffered from poor sales for some time, fuelled by distribution problems.
Gross margin were up 5.8 per cent, a better than performance thanks to better management of mark-downs and promotions during the summer sale. Mothercare said the initial response to its autumn/winter range has been positive, and that its international and direct sales businesses also continue to perform well.
Chief executive Ben Gordon said: “We are encouraged by the trading performance over the last six months. Whilst it has been achieved against a particularly weak and volatile performance in the first half of last year, it demonstrates that the turnaround programme we are implementing is having a positive impact.
“Much remains to be done to achieve a sustained recovery but we remain firmly on track with our plans.”
