Last checked at 12 Jan 2017 07:00
MOTHERCARE PLC
FY17 Q3 trading update
· Return to sales growth in the UK
· International sales continue to benefit from currency, underlying performance still mixed
· 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 7th January 2017.
UK
· UK like-for-like sales were up 1.0% during the quarter, benefiting from online sales growth of 5.5%. Online sales now represent c40% of UK sales
· Total UK sales up 0.6%
· Margin remains within our guidance for the full year
International
· International retail sales were down c6% in constant currency and up c13% in actual currency, reflecting the ongoing currency tailwinds
· Mixed performance continues in International with China and Russia returning to growth and the Middle East remaining challenging
· We opened 40 stores and closed 28, ending the quarter with 1,351 stores and 3.1M sq.ft. of retail space
Group performance for 13 weeks to 7 January 2017
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| 13 weeks: | 41 weeks: |
| FY2016 | FY2017 | 7 January 2017 | |||
| Q3 | Q4 | Q1 | Q2 | % change year-on-year | |
UK |
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| Q3 | Q3 YTD |
Total UK sales | (0.1) | 0.8 | (2.1) | (2.5) | 0.6 | (1.2) |
Online sales | 11.8 | 5.6 | 6.4 | 7.3 | 5.5 | 6.4 |
UK like-for-like sales (1) | 4.2 | 2.1 | 1.2 | (2.5) | 1.0 | (0.1) |
UK space (change in sq.ft.) | (6.1) | (6.4) | (4.8) | (1.7) | (4.5) | (4.5) |
International |
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International retail sales in constant currency (1) | (1.3) | (9.7) | 3.9 | (5.6) | (5.9) | (2.6) |
International retail sales in actual currency (1) | (9.5) | (10.8) | 5.1 | 9.5 | 13.2 | 9.1 |
International space (change in sq.ft.) | 5.8 | 4.6 | 2.3 | 1.8 | 0.0 | 0.0 |
Group |
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Worldwide sales (2) | (5.5) | (6.7) | 2.7 | 5.1 | 7.5 | 5.1 |
Total group sales (3) | (5.4) | 1.4 | (1.7) | 0.5 | 1.8 | 0.2 |
Mark Newton-Jones, Chief Executive Officer of Mothercare plc, said:
"Overall Group performance remains in line with market expectations.
"The UK returned to growth following the challenging summer trading period. We maintained our focus on product improvement and full price sales while prudent stock management allowed us to enter the end-of-season-sale after peak trading with less stock than last year. Margin remains within our guidance for the full year."
"International continues to benefit from currency tailwinds, however underlying performance continues to be mixed in spite of many markets returning to growth. Both China and Russia improved, while the Middle East continues to be challenging. We are working closely with our International partners to modernise their businesses while at the same time see many opportunities in both new and existing markets around the world."
"We remain firmly focused on our strategy to build our businesses both here 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 01923 206455
Richard Smothers, Chief Financial Officer 01923 206455
Helen Gunter, Director of Corporate Communications 01923 206381
Media enquiries to:
MHP Communications:
John Olsen/Simon Hockridge 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 down 1.5% year-on-year at the end of the third quarter with space in the UK down 4.5% year-on-year and International space remained flat.
6 - We will be announcing our Q4 trading update on Thursday 6 April 2017.