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First half overseas retail sales exceed UK for Mothercare

Overall trading is good but UK like-for-like sales down in second quarter trading update

CITY & CORPORATE

First half overseas retail sales exceed UK for Mothercare

In its trading update for the second quarter (13 weeks) 2010, Mothercare announced that Worldwide network sales are up 7.0% with total Group sales up 4.7%. Total UK sales up 1.8% but were outperformed by International retail sales up 14.2%. UK like-for-like sales down 3.2% (down 1.9% inc. VAT). Direct in Home sales up 18.2%.

Group performance for the first half (28 weeks) ended 9 October 2010 stated that worldwide network sales were up 7.5% and total group sales up 2.5%. Total UK sales were down 0.5% with like-for-like sales down 3.8% (down 2.4% inc. VAT). International retail sales were up 17.3% but like-for-like sales flat. Direct in Home sales performed strongly and were up 15.8%.

Ben Gordon, Chief Executive said,"We continue to see strong results from our global growth strategy. In the first half, overseas retail sales exceeded UK retail sales for the first time, and we now have 1,217 stores worldwide in 54 countries.

"International is growing rapidly and we have opened our 50th store in India and our 800th store overseas. We recently acquired a 25% stake in our Australian franchisee, which will have 60 Mothercare and Early Learning Centre stores in three years through a combination of acquisition and organic growth. So far this year we have opened 112 new overseas stores, increasing retail space by 13%. We expect to open at least 150 new overseas stores this year, 50 more than our previous estimate, increasing retail space by at least 20%.

"In the UK, Direct again delivered double digit growth and our new Wholesale channel was boosted by the successful launch of Mini Club, our new clothing partnership with Boots, already trading in 370 Boots stores. The property restructure is progressing well with 20 smaller in town stores closed and 7 larger Parenting Centres opened in the first half. New store openings are, as expected, reducing UK like-for-like sales whilst improving overall profitability.

"We are benefiting from the strategic initiatives we have taken and the rapid growth of International, Direct and Wholesale. The UK consumer environment remains uncertain, and accordingly we are planning cautiously for the important second half."

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