Mothercare sales decline slows

14th Oct 2010 07:34

Mothercare, the baby clothes and children's toy retailer, put in a better performance during the second quarter, narrowing the decline in like for like sales compared with the first three months.UK like for like (LFL) sales dropped 3.2%, or 1.9% including VAT, in the 13 weeks ended 9 October, slightly less than the 4.1% reported in the 15 weeks to 10 July.Total group sales grew 4.7% and were up 2.5% for the first half. LFL sales for the six months were down 3.8%, or 2.4% including VAT.International retail sales grew by 14.2% for the three months and 17.3% over the six month period. LFL sales were flat. "We continue to see strong results from our global growth strategy. In the first half, overseas retail sales exceeded UK retail sales for the first time," said chief executive Ben Gordon, who has now opened the company's 800th store overseas.Mothercare has opened 112 new overseas stores so far this year, increasing retail space by 13%, and at least 150 new overseas stores are expected to open this year, 50 more than previous estimates. This will increase retail space by at least 20%. "New store openings are, as expected, reducing UK like-for-like sales whilst improving overall profitability," said Gordon, adding: "The UK consumer environment remains uncertain, and accordingly we are planning cautiously for the important second half."