Mothercare posts rise in second-quarter UK sales

22nd Oct 2015 10:15

(ShareCast News) - Childcare retailer Mothercare posted a rise in second-quarter UK sales, although the international business continues to face significant currency headwinds.For the 13-week period to 10 October, UK like-for-like sales were up 6.5% thanks to the company's digital strategy growing online sales by 20.4% and the delay of the end-of-season sales into the second quarter.Mothercare said it continued to sell a high proportion of its products at full price, leading to further growth in gross margins.It was a different story for the international business, however, with retail sales up 5.6% in constant currency, but down 5.3% in actual currencies. Mothercare said Europe, the Middle East and Africa saw growth in constant currencies with Asia weaker than last year.Worldwide sales fell 2.8%, while total group sales were down 7.1%, reflecting ongoing store closures in the UK and foreign currency headwinds for the international business.Chief executive Mark Newton-Jones said: "The second quarter results are in line with our full year expectations. The UK is continuing to benefit from our strategic initiatives both online and in store, while International has seen the expected improvement in trading.""Whilst International markets remain volatile, our franchise partners continue to have confidence and have added further space during the period. However, foreign currency continues to be a significant headwind."At 1025 BST, Mothercare shares were up 3.1% at 230p.