Saturday, January 22, 2022

Mothercare cashes in on currency fluctuations in quarterly results

Mothercare has reported a “solid final quarter” as a boost in online sales and improving international markets lift sales.

In the 11 weeks to March 25, the retailer posted a 4.5 per cent growth in like-for-like sales in the UK as margins stayed within forecasts for the full year.

Outside the UK, sales saw a drop of 1.7 per cent on a constant currency basis but currency fluctuations saw sales grow by 15.4 per cent in actual currency.

Sales were boosted by a 13.6 per cent growth in online sales, which now accounts for 41 per cent of the company‘s UK sales.

Mothercare opened 10 transactional websites during the past year, now trading in 21 countries and seeing a constant currency online sales boost of 64 per cent for the year.

READ MORE: Mothercare recovers locally despite mixed results abroad

“We have made further progress in the period, with the UK performing particularly well on a like-for like basis,” chief executive Mark Newton-Jones said.

“Customers‘ response to our spring/summer ranges has been positive, as has the feedback on the new website and our new store environment; over the past two years we have successfully refurbished 70 per cent of the store estate to our new, modern format.

“Our customer database now stands at over three million active customers, allowing us to communicate seamlessly between our digital and physical channels.

“In our international business, we have seen strong sales in China, Indonesia and Russia supported by currency tailwinds, whilst the continuing economic conditions in the Middle East remain challenging.

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