Mothercare reports first statutory profit in five years
Mothercare has reported a pre-tax profit of Â£9.7 million in the year to 26 March as its turnaround continues. This is the first statutory pre-tax profit recorded by the mother and baby products retailer in five years.
The group’s underlying profit before tax rose by 51% in the period to £19.6 million.
Mothercare chief executive Mark Newton-Jones said: "I'm pleased to report that two years into our turnaround strategy we have recorded a 51% growth in underlying profit before tax and the delivery of our first statutory profit in five years.
"The results highlight the significant progress we are making towards returning the UK to profitability. Improvements to our customer offer, both in store and online, and the look and feel of the store estate are driving like-for-like sales growth for a second consecutive year.”
Meanwhile, UK like-for-like sales increased by 3.6% with total sales edging up 0.3% to £459.7 million. UK losses reduced by 64% at £6.4 million.
International like-for-like sales declined by 4.5% as sales and profit were impacted by economic and currency headwinds. The company said it was making improvements to how it operates internationally by exiting underperforming stores and continuing to grow space where there was potential for long term growth.
Newton-Jones added: "We are also taking the lessons learned from our success in the UK and exporting them to our International markets. This is strengthening our International operations and improving the management of our brand globally."
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