Mothercare UK sales continue to disappoint

Full year like-for-like UK sales down four per cent, while international continues to flourish.
Author:
Publish date:
Social count:
0
85_Mothercare store 300.jpg

Mothercare has issued an update on trading for the fourth quarter and the full year ended March 26th 2011.

During the fourth quarter, UK like-for-like sales were down 2.4 per cent, with total sales up slightly by 4.7 per cent.

Meanwhile the worldwide network sales rose by 10.2 per cent and international franchisee retail sales were up ten per cent. Total group sales were up 11.4 per cent.

Full year results showed UK like-for-likes down four per cent and total UK sales were flat.

Worldwide network sales for the year were up 8.6 per cent. International franchisee retail sales rose by 16 per cent and total group sales were up 3.6 per cent.

Direct in Home sales also increased by 10.5 per cent for the full year.

Ben Gordon, chief executive said: "International has delivered another strong year with franchisee retail sales up 12 per cent at constant rates of exchange in the fourth quarter and up 16 per cent in the full year with 166 new overseas stores opened.

"The Asia-Pacific region, which includes our joint ventures in India, China and Australia, is growing particularly rapidly with sales up 47 per cent in the year. We now have 1,267 stores in 55 countries with 373 in the UK and 894 overseas including 62 in India.

"In the UK total sales are up 4.7 per cent in the fourth quarter due to increased sales from the new wholesale business and continuing benefits from our property strategy. The UK trading environment however remains difficult with weaker consumer demand and lower footfall.

"We have cleared autumn/winter stocks in an increasingly competitive environment and, as a result, we expect UK gross margin for the full year to be down 2.5 per cent which is 0.5 per cent lower than previous guidance. As planned, during the year we closed 26 High Street stores and opened 12 parenting centres."

Mothercare expects its international business to continue its growth for the next financial year, with at least 150 new overseas stores opening.

The firm also expects the UK consumer environment to remain challenging and accordingly, is planning cautiously.

Mothercare expects the profitability of the UK retail operations to remain under significant pressure in 2011/12 with weak demand continuing, although input cost pressures on gross margin will be offset by cost savings.

Related

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.

Liberty

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.