Mothercare Q4 sales up but currencies weigh

10th Apr 2014 07:30

Baby goods retailer Mothercare reported a modest increase in fourth-quarter sales but said currency volatility had hit its international business.Mothercare said total group sales rose 0.6% in the 12 weeks to March 29th, although they were 2.6% down in the year to the same date.It said its international division had improved constant currency sales by 9.8% in the quarter but an increasing level of currency devaluation had reduced reported retail sales by 1.8%.In the UK, it said sales had improved since the third quarter, with like-for-like sales falling 0.3% and total UK sales dropping 4%.Despite the issues in its international business, Mothercare said it expected its full-year underlying profit to match market forecasts, but warned that the currency issues in its international business were likely to continue."In the UK, we expect the environment to remain competitive and promotional. In international, we expect the effects of currency devaluation to continue into the new financial year," the group said in a trading update.Mothercare has appointed a temporary Chief Executive, Mark Newton-Jones, to replace Simon Calver, who stepped down from his role in February.The company did not comment on the reasons for Calver's departure, but was understood to feel it needed to make more progress in turning around its lacklustre UK business.PW