Mothercare PLC Trading Statement (5566L)
July 20 2017 - 2:00AM
UK Regulatory
TIDMMTC
RNS Number : 5566L
Mothercare PLC
20 July 2017
MOTHERCARE PLC
FY18 Q1 trading update
-- UK like-for-like sales growth continues
-- International sales remain challenging, primarily driven by the Middle East
-- Overall Group performance in line with expectations
Mothercare plc, the leading global retailer for parents and
young children, today issues the following trading update, which
covers the 15 week period to July 8(th) 2017.
UK
-- UK like-for-like sales up 1.9% during the quarter. We entered
the end of season sale with lower stocks and are achieving a higher
sell through rate.
-- Online sales grew by 3.3%.
-- Total UK sales lower than last year, reflecting ongoing store closure programme.
-- Retail space at the end of the quarter reduced to 1.4m sq.ft,
as expected, with 147 stores (143 Mothercare and four ELC).
International
-- International retail sales were down 8.3% in constant
currency and up 2.2% in actual currency, primarily driven by
continued weakness in the Middle East.
-- Online sales growth of 53% in constant currency and 78% in actual currency.
-- We opened 26 stores and closed 43 during the period, mainly
driven by market exits as we consolidated partners, including
Kazakhstan, ending the quarter with c2.9m sq.ft with 1,133
stores.
Group performance for 15 weeks to July 8th 2017
15 Weeks:
FY2017 8 July 2017
Q1 Q2 Q3 Q4 % change year-on-year
----------------------------- ------ ------ ------ ------- ----------------------
UK Q1
UK like-for-like
sales (1) 1.2 (2.5) 1.0 4.5 1.9
Online Sales (1) 6.4 7.3 5.5 13.6 3.3
Total UK sales (2.1) (2.5) 0.6 3.2 (1.8)
UK space (change
in sq.ft.) (4.8) (1.7) (4.5) (5.9) (7.2)
International
International retail
sales in constant
currencies (1) 3.9 (5.6) (5.9) (1.7) (8.3)
International retail
sales in actual currencies
(1) 5.1 9.5 13.2 15.4 2.2
International space
(change in sq.ft.) 2.3 1.8 0.0 0.9 (2.3)
Group
Worldwide sales (2) 2.7 5.1 7.5 10.7 0.8
Total group sales
(3) (1.7) 0.5 1.8 (12.2) (0.0)
----------------------------- ------ ------ ------ ------- ----------------------
Mark Newton-Jones, Chief Executive Officer of Mothercare plc,
said:
"We have continued to make progress in the UK during the period.
We have seen customers respond well to our end of season sale,
which we entered with less stock than last year, and are achieving
a higher sell through rate. Whilst online sales recorded a lower
growth, in contrast to higher sales growth in store, we don't
believe this represents an underlying permanent shift in customer
behaviour. We are about to launch our autumn ranges, but it remains
uncertain how consumers will respond to inflation.
"In our International business, the challenging economic
conditions in the Middle East continue and are impacting overall
performance, and so the outlook remains volatile. We continue to
export our learnings from the UK as our business improves here, to
support our partners with the modernisation of their franchise
businesses, and see further opportunities for growth both online
and in stores.
"We remain firmly focused on our strategy, both here in the UK
and internationally. Our vision remains clear: to be the leading
global retailer for parents and young children."
Investor and Analyst enquiries to:
Mothercare plc
Mark Newton-Jones, Chief Executive Officer 01923 206455
Richard Smothers, Chief Financial Officer 01923 206455
Helen Gunter, Director of Corporate Communications 01923 206381
Media enquiries to:
MHP Communications:
Simon Hockridge 020 3128 8789
Notes:
1 - UK like-for-like sales are defined as sales from stores that
have been trading continuously from the same selling space for at
least a year and include online sales. UK online sales include both
website sales and sales taken on iPads in store. International
retail sales, including online sales, are the estimated retail
sales of overseas franchisees and joint ventures and associates to
their customers. International like-for-like sales are the
estimated franchisee retail sales from stores that have been
trading continuously from the same selling space for at least a
year. International sales in constant currency exclude the impact
of movements in foreign exchange on translation.
2 - Worldwide sales are total International sales plus total UK
sales. Total International sales are International retail sales
plus International Wholesale sales.
3 - Total group sales is a statutory number and is made up of
total UK sales and receipts from our International partners, which
includes royalty payments and the cost of goods dispatched to our
franchise partners.
4 - This announcement contains certain forward-looking
statements concerning the company. Although the Board believes its
expectations are based on reasonable assumptions, the matters to
which such statements refer may be influenced by factors that could
cause actual outcomes and results to be materially different. The
forward-looking statements speak only as at the date of this
document and the company does not undertake any obligation to
announce any revisions to such statements, except as required by
law or by any appropriate regulatory authority.
5 - Overall space was down 4% year-on-year at the end of the
first quarter with space in the UK down 7.2% year-on-year and
International space was down 2.3%.
6 - We will be announcing our Interim Results on November 23(rd)
2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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