Mothercare’s losses widen
Mothercare has seen its half year losses widen after group sales declined by 8.4% to £452.3 million.
In the 28 weeks to 12 October, the company made a pre-tax loss £21.2 million compared to a loss of £18.5 million in the same period last year.
While UK like-for-like sales declined by 2%, international retail sales fell by 5.3% in constant currency. Mothercare said it experienced growth in its core markets of India, Indonesia and Russia but faced trading challenges in the Middle East.
Mothercare’s UK business entered administration last month and announced a phased programme of closures for the company’s 79 stores. However, the retailer’s international business was unaffected by the move and continues to trade as normal.
In a statement today, Mothercare chief executive Mark Newton-Jones said: “We are confident in the future of the Mothercare brand. We believe that, without the financial and management burden of running a UK retail operation, we can singularly focus Mothercare on its global international franchise.
“This opportunity for this business is best demonstrated by the fact that there are 130 million babies born every year across the world, compared to 700,000 in the UK, and the group will now look to drive value for shareholders by harnessing that potential.”
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