Mothercare Plc : Mothercare Plc : Interim Management Statement

        Mothercare Plc : Mothercare Plc : Interim Management Statement

                                MOTHERCARE PLC
                         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 
2013.

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
International retail sales in constant
currencies ^(1)                               +14.8%             +15.1%
International retail sales^(1)                +12.0%             +11.2%
UK
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

International
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.

UK
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.

Financial position
Following the update on  Q3 trading, there has  been no significant change  to 
the financial position of the Company.

Enquiries to:
Mothercare plc
Ramona Tipnis, Director of Investor Relations 01923 206455

Tulchan Communications
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.

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Source: Mothercare Plc via Thomson Reuters ONE
HUG#1671009
 
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