UK: Mothercare Q3 sales dip raises analyst doubts
- Q3 total group sales down 7.4%
- UK sales down 12.9%
- International retail sales up 12%
Doubts have been raised over the future viability of Mothercare’s UK operations after the infant goods retailer reported further sales declines in its third quarter.
The UK-based company said total group sales fell 7.4% in the three months to 12 January, thanks to a 12.9% decline in UK sales and a 5.9% slide in UK like-for-like sales.
However, its international retail sales were up 12% and direct in home revenues rose 0.9%.
The UK sales decline was blamed in part on the company’s programme of store closures, reducing its UK roster to 269 now from 311 at the beginning of the fiscal year.
Mothercare said its three-year transformation and growth plan was “on track”, with chief executive Simon Calver hailing “solid progress” in the quarter.
“International continues to see double-digit growth and in the UK we have made further progress, closing loss-making stores,” Calver added.
“The transition to our new online platform has passed the test of peak trading, with direct in home growing at double-digit rates during December.”
However, Neil Saunders, MD of analyst Conlumino, said Mothercare faced “significant long-term challenges” in the UK, against competitive threats such as Kiddicare and John Lewis At Home.
“Unless UK performance starts to improve, question marks will increasingly be asked about the viability of operating in its domestic market,” Saunders said.
How retailers deal with the omni-channel challenge varies greatly, as do opinions on how to integrate strategies for online, mobile and physical transactions....
More than 200 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
Unveiling a new five-year plan to improve worker safety at the factories in Bangladesh that produce their clothing, North American brands and retailers were keen to stress the similarities between the...
UK fashion retailer Jigsaw has hired Richard Gilmore, currently planning director at Fred Perry, to the new role of COO as part of efforts to strengthen its management team....
Clothing retailers met with UK government representatives yesterday (3 July) to discuss ways to improve their supply chains following the collapse of the Rana Plaza apparel factory building in Banglad...
UK department store retailer John Lewis has appointed Paula Nickolds as its new buying and brand director, succeeding Peter Ruis, who has been named CEO of clothing chain Jigsaw....
Companies representing more than a third of UK clothing sales have signed the Sustainable Clothing Action Plan (SCAP) 2020 Commitment, a scheme that will see them work together to reduce the environme...
The UK government is putting pressure on clothing retailers that source from Bangladesh to improve the safety of their supply chains in the country. ...
- What Marks & Spencer's numbers mean for clothing
- Balance essential in garment supply chain
- Tanzania adds to Africa’s apparel sourcing mix
- Supply chain weighs on Kering's green footprint
- Where next for 3D design and prototyping?
- AGOA delays drag on sourcing decisions
- American Eagle Outfitters Q1 earnings soar
- EU and Turkey to update customs union
- Burberry shares slide as FY outlook slashed
- Apparel bright spot in Wal-Mart Q1