International sales shine for Mothercare
Multichannel also contributes to increase in sales
In its interim results statement for for the 28 weeks (first half) ended 9 October 2010, Mothercare announced that Group sales were £397.1m, up 2.5% (2009: £387.3m). Worldwide network sales were up 7.5%, to £590.2m (2009: £549.1m).
Group underlying profit before tax was £12.2m, up 22.0% (2009: £10.0m) after £2.0m share based payment charge (2009: £6.1m). Group profit before tax was £0.3m (2009: loss of £7.1m).
For the first time, 1st half overseas retail sales exceeded UK retail sales at £293.0m, up 17.3%.
The company opened 112 new international stores, increasing retail space by 13% and now has 860 stores in 53 countries. It has increased its store opening target in India from 100 to 150.
At home, total UK sales were £295.1m, down 0.4%. Like-for-like sales down 3.8% (down 2.4% inc. VAT), partly due to planned cannibalisation from store openings.
There was continuing multi-channel growth and Direct in Home sales were £36.8m, up 15.8%. Direct in Store sales were £27.9m, up 6.4%. Total Direct sales were £64.7m, up 11.6%
The new Early Learning Centre website launched was time for peak trading.
Ben Gordon, Chief Executive, said,"International is going from strength to strength with retail sales up 17.3% and profits up 33.9%. 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. Having regard to the overall performance of the group and its underlying cashflow, the interim dividend has been increased by 16.4%”.
The Retail Bulletin has organised their 2nd Multichannel Summit, to be held in London February 2nd 2011. The event is sponsored by k3 retail and will look at how retailers can maximize profits, market share and loyalty through cost effective, seamless, integrated multichannel strategies.
If you would like to attend as either a delegate or Networking Partner, go to www.retailbulletinconferences.com/multichannel2011
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