Mothercare making progress as FY loss narrows
- FY losses narrow to GBP13.1m
- UK like-for-like sales up 2%
- UK net loss of GBP18m
Mothercare's once struggling UK business reported like-for-like sales growth
UK mother, baby and children's goods retailer Mothercare said it has made progress against all six strategic pillars set out in its turnaround plan as it revealed lower pre-tax losses for the year.
Pre-tax losses narrowed to GBP13.1m (US$20.5m) in the year ended 28 March from GBP26.3m in the year ago period. Shares rose 4.6% on the news yesterday (21 May) to 235.2 pence.
Mothercare's once struggling UK business reported like-for-like sales growth of 2%, representing its fourth consecutive quarter of growth, with gross margin said to have stabilised.
The division, however, made a net loss of GBP18m against losses of GBP21.5m in the prior year as the group continued to close underperforming stores.
International like-for-like sales were up 5.6% with underlying profit edging up 1% to GBP45.9m. International now accounts for 62% of worldwide sales (UK and international), which were up 1% to GBP1.2bn.
In the past year, Mothercare has recruited a new CEO and CFO, entered into new financing arrangements with its banks, fended off an unwelcome takeover approach and created a new strategy to modernise and reinvigorate the brand.
"We are making good progress against all six pillars of our strategy and we will continue to build from this platform in the year ahead," said CEO Mark Newton-Jones. "There is still much to do and trading conditions may remain challenging, but we will stay singularly focused on our vision of being the leading global retailer for parents and young children."
Help test our new apparel sourcing tool.
- Rana Plaza four years on – Timeline of change
- Why collaboration is key to fashion supply chains
- Industry groups reaffirm commitment to Bangladesh
- Trump and Brexit get a dose of pragmatism
- Using worker surveys to drive supply chain change
- Adidas to digitalise Speedfactory concept
- Nike filed patent for "reinforced denim"
- M&S extends sourcing deal with Lindsey brothers
- Gap unveils five-year sustainable fibres pledge
- US Q1 in brief – Columbia Sportswear, Amazon
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Outdoor performance apparel 2016: A broader perspective