UK supermarket retailer Morrisons has announced that it will launch a children's wear line in early 2013, called Nutmeg.

The announcement came as the country's fourth-largest grocer reported rising net profit and revenues, but falling like-for-like sales. The company recorded GBP329m net first-half net profit, against GBP326m a year earlier.

Sales grew 2.3% to GBP8.9bn, but like-for-like sales declined 0.9%.

In March, the company appointed former Peacocks managing director Tim Bettley as director of clothing. At the time, the retailer said he was brought in to manage the growth of its partnership with Peacocks.

Commenting on the move, Conlumino analyst Joseph Robinson said: "In non-food, it is following up on the recent acquisition of Kiddicare with a new kids clothing range Nutmeg, building on the traction it is gaining in the sector off the back of Peacocks concessions. These moves are both sensible and represent building blocks for future expansion in these areas."