Mothercare sales drop

04-04-2007

Mothercare sales drop
Mothercare experienced a 0.3 per cent drop in like-for-like fourth quarter sales across its UK stores, the company said today.

In a trading statement the high street retailer, which provides baby equipment and clothing for infants and expectant mums, said the fall applied to the 11 weeks to March 31st

However, like-for-like sales across Mothercare's UK stores were marginally up over the 52 weeks to March 31st, increasing by 0.8 per cent over the year.

Analysts at Bridgewell Securities said that while the retailer's fourth quarter sales fell short of estimates, it expected Mothercare's revenues to be boosted following the roll out of its out-of-town refurbishment programme.

Meanwhile, Mothercare stressed that total group sales were up 4.4 per cent over the fourth quarter and by 5.1 per cent over the year, with increased online and international sales helping to boost the company's disappointing performance across its UK stores.

Sales across the group's Direct in Home business, including internet and catalogue sales, were up 11 per cent in the 11 weeks to March 31st and by 15 per cent over the year.

Mothercare added that its international franchise business grew "rapidly" over the year, with a 30 per cent increase in overall sales driven by "strong" like-for-like sales and the opening of 62 new stores.

The retailer now operates a total of 328 franchises overseas.

Commenting on the results, Mothercare chief executive Ben Gordon said: "Mothercare has delivered a solid fourth quarter and full year sales performance, with sales growth of 5.1 per cent for the year despite a tough trading environment in the second half."



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