International revenue drives Mothercare growth

UK sales for the retailer slip, but overseas sales soar in the first half results.
Publish date:
Social count:

Mothercare has reported group sales for the 28 weeks (first half) ended October 9th 2010 of £397.1m, up 2.5 per cent year-on-year (2009: £387.3m).

Group underlying profit before tax for the period soared by 22 per cent to £12.2m(2009: £10.0m) after a £2m share based payment charge (2009: £6.1m). While group profit before tax £0.3m compared to a loss in 2009 of £7.1m.

The first half was particularly strong for Mothercare's international business with international franchisee retail sales at £293m, a rise of 17.3 per cent. This was the first time that overseas retail sales exceed UK retail sales.

The firm opened 112 new international stores, increasing retail space by 13 per cent and has gone on to increase its 2010/11 store opening target from 100 to 150.

During the first half, Mothercare also cquired a 25 per cent stake in Australia franchisee to add to its existing 30 per cent stakes in China and India.

In the UK, total sales slipped 0.4 per cent to £295.1m. Like-for-like sales were also down 3.8 per cent, which the company says is partly due to planned cannibalisation from store openings

Mothercare closed 20 smaller in-town stores during the first half and seven larger parenting centres were opened.

Direct in Home internet sales were £36.8m, a rise of 15.8 per cent. Direct in Store sales were £27.9m; up 6.4 per cent, making total Direct sales £64.7m; up 11.6 per cent.

The new Early Learning Centre website has also been launched in time for the peak Christmas trading period.

Mothercare also reported that its new Wholesale channel is expanding rapidly, with total Wholesale sales doubling to £12.6m (2009: £6.3m).

Ben Gordon, chief executive, said: "International is going from strength to strength with retail sales up 17.3 per cent and profits up 33.9 per cent. We now have 860 stores overseas in 53 countries and are on track to meet our new target to open at least 150 in total this year.

"In the UK which remains challenging, the important property restructure is progressing well, Direct continues to grow strongly and our new Wholesale channel was boosted by the successful launch of mini club, our new clothing partnership with Boots.

"The UK consumer environment remains uncertain and we continue to plan cautiously. We are however benefiting significantly from the strategic initiatives we have taken and from the rapid growth of international, Direct and Wholesale."


Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.


UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.