Mothercare issues upbeat half-year trading statement
Mothercare’s company performance for the 28 weeks to 8 October 2005, produced total sales including international, up 3.0% compared to 28 weeks to 9 October 2004 up 2.5%, with overall UK gross margins increasing modestly.
The company says that the sales performance of the UK business continues to be driven by improved product ranges and stores and customer service levels supported by a more robust distribution network.
Total UK sales includes growth of 9% from the Direct business which has increased total UK sales growth by 0.4%.
Mothercare have opened six new UK stores and closed five stores, taking the total number of UK stores at the end of the half year to 232.
International sales have increased by 17% with underlying growth driven by strong franchisee like-for-like sales, combined with Mothercare’s continuing international store opening programme. There have been 29 International stores opened during this period, taking the total to 247. Additionally, there has been a recently signed franchise agreement to open some 40 stores in India over the next five years, the first of which will open in April 2006.
Ben Gordon, Mothercare chief executive, said:
“The work we have done to strengthen the business is evident in our performance, with our UK business showing resilience in what remains a difficult trading environment. Further, the strength of our growing international business balances our dependence on the UK market. We will open our first stores in India next year, a key milestone in the delivery of our international growth strategy.”
