Mothercare UK like-for-like sales rise

17th Jul 2014 07:42

Baby goods retailer Mothercare reported a rise in UK same-store sales and said its international division had returned to double-digit sales growth.The group, which recently rejected two bids from US-based Destination Maternity, said UK like-for-like sales rose 0.9% in the 15 weeks to July 12th and a 1.2% decline in total UK sales matched a reduction in shop space.It said offering fewer discounts in the UK had led to lower sales online at better cash margins, which was in line with expectations.Mothercare also said its overseas business was back to double-digit growth with space up 13.3% and constant currency sales up 14.7%, but currency devaluation had affected reported retail sales.The group has faced a tough time in its UK business due to online competition, leading to the departure of its Chief Executive Simon Calver in February.It confirmed that new Chief Executive Mark Newton-Jones had joined the board on Thursday and said his record of turning around businesses gave Mothercare confidence that it would revive the UK operation and build on its international growth.Chairman Alan Parker said: "Mark has already made a substantial difference in many areas since he joined us, including the introduction of a new approach to trading and we have made an encouraging start to the year."Newton-Jones said: "We now need to put in place the building blocks to strengthen the UK performance and I believe there is then a tremendous opportunity to take this business forward."PW