Mothercare Plc : Mothercare Plc : Interim Management Statement
INTERIM MANAGEMENT STATEMENT
Q3 TRADING UPDATE
Transformation and Growth plan on track
Mothercare plc, the leading international mother and baby retailer, today
updates on Q3 trading covering the 13-week and 41-week period to 12 January
Simon Calver, Chief Executive of Mothercare plc, summarised:
"We have made solid progress during Q3, despite a challenging consumer
backdrop for the UK and Eurozone. International continues to see double-digit
growth and in the UK we have made further progress closing loss making stores.
The transition to our new online platform has passed the test of peak trading
with Direct in Home growing at double-digit rates during December. Our work
towards delivering improved value, choice and service for our customers
continues to make an impact and I am very encouraged by the new ranges and
innovative product ready to go into stores for spring/summer 2013."
Group performance, third quarter and year to date
Q3 - 13 weeks to Q3 YTD - 41 weeks to
12 January 2013 12 January 2013
Worldwide network sales^(1) (0.2%) +1.3%
Total group sales (7.4%) (6.5%)
International retail sales in constant
currencies ^(1) +14.8% +15.1%
International retail sales^(1) +12.0% +11.2%
Total UK sales (12.9%) (10.1%)
UK like-for-like sales^(1) (5.9%) (4.4%)
Direct in Home sales +0.9% +0.9%
Highlights for Q3
oOn track with our three-year Transformation and Growth plan
oInternational continues to deliver double-digit growth
oUK strategy to exit loss making stores progressing well
oCash tightly controlled with continued focus on cash gross margin
Our International business opened a net 31 stores during the quarter, and now
operates from 1,129 stores across 61 countries. Our full year target of circa
15% space growth is unchanged.
International retail sales grew by 14.8% in constant currency while reported
retail sales were up 12.0% as currency moves continued to have an adverse
impact during Q3. With the exception of Europe, International continues to
deliver double digit growth and remains inline with expectations. Progress
from countries such as Russia and Turkey is offsetting Eurozone weakness,
resulting in low single digit growth for Europe during the quarter.
A further 11 stores (8 ELC and 3 Mothercare) were closed during the quarter,
which means our UK business now operates from 269 stores compared to 311
stores at the beginning of the year. As a result, reflecting the ongoing
closure of loss making stores, total UK sales were down 12.9% during Q3.
Consistent with the two-year trend and our focus on cash gross margins, which
we highlighted at the Interims, UK like-for-like sales were down 5.9% during
Q3. The transition to a new online platform and our mobile initiatives have
continued to benefit Direct in Home, which grew 0.9% during Q3 with December
up over 12%.
Our continued progress with improving value, choice and service for our
customers is evident in better prices, new and innovative product and better
staff engagement with customers.
Our three-year Transformation and Growth plan remains on track. We are working
towards transforming the UK while growing International profits.
Following the update on Q3 trading, there has been no significant change to
the financial position of the Company.
Ramona Tipnis, Director of Investor Relations 01923 206455
Katharine Wynne & Susanna Voyle 020 7353 4200
Note 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 Direct in Home and Direct in Store. International retail 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. Total
International sales are International retail sales plus International
Wholesale sales. Worldwide network sales are total International sales plus
total UK sales.
Note 2 - 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.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Mothercare Plc via Thomson Reuters ONE
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