Mothercare Plc : Trading Statement <Origin Href="QuoteRef">MTC.L</Origin>

MothercareAnnouncement

14/01/2016 07:10

MOTHERCARE PLC 
 
 Q3 trading update 
 
   
 
 FURTHER IMPROVEMENT IN UK - TURNAROUND ON TRACK 
 
 INTERNATIONAL MARKETS REMAIN CHALLENGING 
 
 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 13 week period to
9 January 2016. 
 
 UK 
 
* UK like-for-like sales were up 4.2% during the quarter, benefiting from
online sales growth of 11.8%. Online sales now represent over a third of total
UK sales 
* Gross margin preserved despite the unseasonably warm weather which led to
higher stock and a deeper end-of-season sale 
* We continued to reconfigure our store portfolio and had 41 stores (25% of
space) refurbished and trading in the new format in time for peak trading. We
ended the period with 172 stores (164 Mothercare and eight ELC) and 1.6m sq.ft
of retail space 
* Total UK sales down (0.1)% as improved online and store performance made up
for the (6.1)% year-on-year reduction in space 

 
 International 
 
* International retail sales were down (1.3)% in constant currency and down
(9.5)% in actual currency, reflecting the previously highlighted and ongoing
economic and currency headwinds 
* All four International regions benefitted from space growth. Europe, Asia
and Latin America saw retail sales growth in constant currencies with the
Middle East weaker than last year 
* International space continuing to develop with the opening of larger stores.
Space up 5.8% year-on-year with an increase of 12 stores during Q3 (45 opened
and 33 closed) and ended the quarter with 1,322 stores and 3.1m sq.ft. of
retail space 

 
   
 
 Group performance for 13 weeks to 9 January 2016 
 
                                                                                          13 weeks:     41 weeks:    
                                                          FY2015            FY2016            9 January 2016             
                                                          Q3       Q4       Q1       Q2       % change year-on-year      
  UK                                                                                       Q3            Q3 YTD       
  Total UK sales                                           (1.9)    1.5      (0.9)    1.8      (0.1)         0.2          
  Online sales                                             16.1     31.8     23.9     20.4     11.8          18.0         
  UK like-for-like sales (1)                               1.1      5.1      1.3      6.5      4.2           3.9          
  UK space (change in sq.ft.)                              (4.2)    (4.5)    (5.3)    (7.4)    (6.1)         (6.1)        
  International                                                                                                     
  International retail sales in constant currencies (1)    14.4     11.4     (1.3)    5.6      (1.3)         0.8          
  International retail sales in actual currencies (1)      5.4      5.5      (4.8)    (5.3)    (9.5)         (6.5)        
  International space (change in sq.ft.)                   11.5     9.0      7.9      6.6      5.8           5.8          
  Group                                                                                                             
  Worldwide sales (2)                                      2.2      4.1      (3.5)    (2.8)    (5.5)         (3.9)        
  Total group sales (3)                                    (2.9)    (1.0)    (5.2)    (7.1)    (5.4)         (5.9)        
   
 
 Mark Newton-Jones, Chief Executive Officer of Mothercare plc, said: 
 
 "Overall Group performance remains in line with market expectations, with our
UK performance further improving and International continuing to be
challenging." 
 
 "In the UK we have delivered healthy like-for-like sale growth, helped by a
strong online performance. We maintained our full price approach and entered
the end-of-season sale after peak trading, albeit with higher stock levels as
a result of the unseasonably warmer weather. Margins have been preserved and
remain within our guidance for the full year." 
 
 "With our International partners we continue to modernise our business using
lessons learnt from the UK and continue to lay down space for the future.
However sales are down as we face ongoing economic and currency headwinds." 
 
 "We remain firmly focused on our strategy to build our businesses both in the
UK and internationally and 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 
 
 Richard Smothers, Chief Financial Officer 
 
 Ramona Tipnis, Director of Investor
Relations                                   
01923 206455 
 
   
 
 Media enquiries to: 
 
 Lorna Else, Interim Director of Communications, Mothercare 
 
 John Olsen, MHP Communications                      
                             020 3128 8100 
 
   
 
 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. 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. 
 
 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 up 1.5% year-on-year at the end of the third quarter
with space in the UK down (6.1)% year-on-year and International space up 5.8%
year-on-year. 
 
 6 - We will be announcing our Q4 trading update on Thursday 14 April 2016. 
 
   
 
   
 
   
 

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 Source: Mothercare Plc via Globenewswire 
 HUG#1978737