Mothercare's three-year plan cuts losses to £600,000
International retail sales were up from £338.3m last year to £374.8m while UK sales fell from £262.7m to £240m. But the UK fall, representing 3.4pc, was far less drastic than the 7pc over the same period the year before.
Mothercare currently runs 1,400 shops globally, with 280 in the UK. Earlier this year it admitted that it had been “squeezed in the middle” between supermarkets offering cheap ranges and specialist baby equipment retailers at the top end.
The group posted a collapse in profits in the year to March 31 and a new chief executive, Simon Calver, joined from Lovefilm. A turnaround plan was laid out that included shutting around 100 stores, slashing prices and lowering head office costs by 16pc. The company is now six months into this three-year plan.
Mr Calver said: “My first six months as CEO have been both challenging and exciting. We are starting to see the impact of our actions to ensure that Mothercare can deliver what our customers want – better value, choice and service.
“Our results show early signs of progress despite the challenging trading conditions in the UK and the eurozone. International profits have grown by 20pc, while the like-for-like sales trend in the UK has improved and losses have reduced. Ahead of our peak trading period over Christmas, we are working hard to serve our customers better and focusing on the delivery of our plan.”
Alan Parker, chairman of Mothercare, said: “We have made good progress over the last six months in implementing the cost and efficiency measures of our three-year transformation and growth plan for Mothercare. These are early days and while there is much still to do, I remain confident that we are on track.”