REG-Mothercare Plc : 3rd Quarter Results <Origin Href="QuoteRef">MTC.L</Origin>

MothercareAnnouncement

28/01/2015 24:58

MOTHERCARE PLC
Q3 trading update
Mothercare plc, the leading global retailer for parents and young children, today issues the following trading update, which covers the 13 week period to 10 January 2015.
Overview for Q3 - 13 weeks to 10 January 2015
Financial highlights
International double-digit growth with constant currency sales up 14.4% and space up 11.5%. As expected, currency devaluation has impacted reported retail sales growth
UK like-for-like sales up 1.1% with total UK sales down 1.9% despite space being down 4.2% 
Multi-channel growth with UK online sales up 16.1%, representing 31.8% of total UK sales (26.9% last year)
UK gross margin rate continues to stabilise as a result of more full price sales, lower levels of promotional activity and delaying the end of season sale until Boxing Day
Worldwide sales up 2.2% with reported total Group sales down 2.9%
Operational highlights
Mobile continuing to grow and now accounting for 75% of UK online sessions (65% last year)
Q3 click-and-collect orders up 10.7% representing 36.6% of UK online orders
End of season sale stock 16% lower and sell through rate to date 13% better than last year
During the quarter, we opened 24 International stores (103 opened YTD) and closed 6 UK stores (20 closed YTD)
Group performance for 13 weeks to 10 January 2015
  
13 weeks to:
41 weeks to:
  
10 January 2015
  
% change year-on-year
Group 
  
  
 Worldwide sales (1)
  
 2.2 
 0.3 
 Total group sales (2)
  
 (2.9) 
 (1.6) 
International
  
  
 International retail sales in constant currencies (1)
  
 14.4 
 12.6 
 International retail sales in actual currencies(1)
  
 5.4 
 1.3 
 International space (change in sq.ft.) 
  
 11.5 
 11.5 
UK


  
  
 Total UK sales 
  
 (1.9) 
 (1.4) 
 Online sales 
  
 16.1 
 14.9 
 UK like-for-like sales(1)
  
 1.1 
 1.3 
 UK space (change in sq.ft.) 
  
 (4.2) 
 (4.2) 
Mark Newton-Jones, Chief Executive Officer of Mothercare plc, said:
"Third quarter results are in line with our plan. Importantly, in the UK, we have continued to reduce the level of promotional activity and went into the end of season sale on Boxing Day, with less stock and later than in recent years. These actions are re-establishing Mothercare as a full price retailer and in turn stabilising our margin. In International, we have seen continued strong growth from all territories, despite the economic uncertainty in some markets.
"Whilst trading conditions remain challenging, we are continuing to make good progress on our strategic plan. Our vision is clear - to be the leading global retailer for parents and young children."
Conference call
A conference call for Analysts will be held at 09:30hrs today.

Investor and Analyst enquiries to:
Mothercare plc
Mark Newton-Jones, Chief Executive Officer
Matt Smith, Chief Financial Officer
Ramona Tipnis, Director of Investor Relations  01923 206455
Media enquiries to:
Anna Harland (Mothercare plc) 
Katharine Wynne / Jonathan Sibun (Tulchan Communications)  020 7353 4200
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. Total International sales are International retail sales plus International Wholesale sales. Worldwide sales are total International sales plus total UK sales.
2 - 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.
3 - 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.
4 - Overall space was up 5.1% year-on-year at the end of the third quarter with space in the UK down 4.2% year-on-year and International space up 11.5% year-on-year.
Space (k sq.ft.)
Q1 FY2014
Q2 FY2014
Q3 FY2014
Q4 FY2014
 UK 
 1,770 
 1,770 
 1,760 
 1,737 
 International 
 2,430 
 2,505 
 2,610 
 2,656 
Total
4,200
4,275
4,370
4,393
Stores (#)
Q1 FY2014
Q2 FY2014
Q3 FY2014
Q4 FY2014
 UK - Mothercare 
 192 
 191 
 191 
 189 
 UK - ELC 
 50 
 46 
 40 
 31 
Total UK
242
237
231
220
 International - Mothercare 
 745 
 766 
 801 
 819 
 International - ELC 
 371 
 390 
 400 
 402 
Total International
1,116
1,156
1,201
1,221
Total
1,358
1,393
1,432
1,441
Space (k sq.ft.)
Q1 FY2015
Q2 FY2015
Q3 FY2015
Q4 FY2015
 UK 
 1,728 
 1,702 
 1,686 
  
 International 
 2,753 
 2,828 
 2,907 
  
Total
4,481
4,530
4,593
Stores (#)
Q1 FY2015
Q2 FY2015
Q3 FY2015
Q4 FY201
 UK - Mothercare 
 186 
 183 
 180 
  
 UK - ELC 
 25 
 23 
 20 
  
Total UK
211
206
200
 International - Mothercare 
 854 
 878 
 904 
  
 International - ELC 
 411 
 422 
 420 
  
International
1,265
1,300
1,324
Total
1,476
1,506
1,524


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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Mothercare Plc via Globenewswire
HUG#1887118