Mothercare sales rise 7.9%, confident for H2

18th Nov 2009 07:28

Children's retailer Mothercare reported a 7.9% hike in interim sales boosted by new overseas stores, but swung to a pre-tax loss after it was hit by charges. Group sales increased to £387.3m for the 28 weeks ended 10 October 2009 from £359.0m the same time a year before. Mothercare posted a pre-tax loss of £7.1m after a charge of £17.1m, compared to a profit of £13.2m previously.Underlying pre-tax profit rose to £10m from £9m in the same period last year. UK sales for the period were up 2.7% while sales at its international stores surged 30%. Mothercare, which has opened 62 overseas stores in the first half, has increased its full year target to 115 stores from previous guidance of 100.Commenting on the group's performance Ben Gordon, chief executive, said, "In the UK we have again seen positive like-for-like sales growth with the performance boosted by the success of our property strategy and the rapid growth of Direct.He added, "With the strength of our two global brands, our rapidly growing international platform, a reducing UK cost base and debt free business, we are well placed as we enter the important second half."The interim dividend has been increased 19.6% to 5.5p.