Home / Knowledge / News / Textiles / Global sales surge 15.3% at Mothercare in Q4FY'13
Global sales surge 15.3% at Mothercare in Q4FY'13
11
Apr '13
Mothercare plc, the leading international mother and baby retailer, updates on Q4 trading covering the 11 week and 52-week periods to 30 March 2013

Highlights for Q4
- UK store closures ahead of plan, with 56 loss-making stores closed during the year
- UK like-for-like sales supported by strong double-digit growth from Direct in Home
- Continued focus on cash gross margin
- Double-digit International growth, despite continuing Eurozone weakness
- New innovative product launches during the year
- Underlying profit before tax for FY2013 is in line with market expectations

International

Excluding Australia and New Zealand, our International business opened 115 stores and increased space by 13.5% during the year. We now operate from 1,069 stores across 60 countries and remain encouraged by the growth opportunities across all our regions.

International retail sales, excluding Australia and New Zealand, grew by 15.3% in constant currencies during the fourth quarter. The easing of adverse currency movements resulted in a similar increase in reported retail sales.

With the exception of Europe, which continues to be impacted by ongoing weakness across the Eurozone, our International business has again delivered double-digit retail sales growth both for the quarter and year as a whole. In Russia, our largest market outside the UK, retail sales reached a new high of ÂGBP120 million this year while in China retail sales were up 80% for the year.

In  January we announced that the  Directors of Mothercare Australia Limited, in  which  Mothercare plc had a minority 23% shareholding, had taken the decision to  place  the  business  into  administration.  Having assessed various potential strategies, the administrators have decided to close the business. As a result all 74 stores in Australia and New Zealand will close in due course.

UK

During the quarter, we closed 14 stores (four Mothercare and 10 ELC), exceeding our original target for the year by six. Having closed 56 stores (13 Mothercare and 43 ELC) during the year, we now operate from 255 stores (196 Mothercare and 59 ELC) in the UK.

These store closures have reduced space by 7.2% year-on-year and eliminated some of our worst performing stores. A strong performance from Direct in Home has limited the impact of our store closure programme, resulting in total UK sales declines of 5.1% for the fourth quarter.

Our focus on improving value, service and availability for both stores and Direct is beginning to have a positive impact. This  is clearly evident in the  steady  and  continued  improvement  in  customer  satisfaction  scores. We have started to introduce more innovation into the business. 

Our most notable launches this year have been the Value clothing range; Innosense, our own brand feeding range; and Xpedior, our own brand pushchair at the very competitive price of ÂGBP250, all aimed at better addressing the needs of our customers.

Our work to improve availability and increase innovation and choice for our customers has required us to build stock levels for certain product lines. This planned investment in stock has increased net debt, which we now expect to be no more than ÂGBP35 million at 30 March 2013.

Mothercare

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search