Business
FY19 Q4 Trading Update
FY19 Q4 Trading Update.
About this update from Mothercare Plc
[{"type":"text","content":"\n \nRNS Number : 0669V Mothercare PLC 04 April 2019 \n\nMOTHERCARE PLC\nFY19 Q4 trading update\n \n\"Significant strategic progress and full year profit in line with market expectations\"\n \nMothercare plc, the leading specialist global retailer for parents and young children, today issues the following trading update, which covers the 12 week period to March 30th 2019.\n \nProgress with Strategic Transformation\nAs part of our ongoing transformation plan, we have achieved the following over the quarter:\n \n· On 12th March 2019 announced the sale of the Early Learning Centre to The Entertainer for £13.5 million, enabling a further reduction in bank debt and a focus on our core strategic priorities\n· Concluded the changes necessary to create a leaner organisational structure and the establishment of three new internal divisions; Mothercare Global Brand, Mothercare UK and Business Services\n· Successfully completed the UK store closure programme ahead of schedule, closing 40 stores in the past 3 months. UK estate of 80 stores at 3rd April 2019, down from 137 in the prior year, representing a reduction in space of 30%\n· On track to deliver at least £19 million of annualised cost savings\n· Full-year performance remains unchanged and in line with previous guidance\n \nInternational\n· International retail sales down 4.9% in constant currency; down 4.5% in actual currency\n· Retail sales in core markets down 5.7% in constant currency driven primarily by economic and trading challenges in the Middle East. Growth in the quarter was observed in core markets of Russia, India and Indonesia\n· Retail space at the end of the quarter of c3.0m sq.ft with 1,227 stores\n \nUK\n· UK like-for-like sales decline of 8.8% during the quarter, representing an improvement on the prior two quarters\n· Improved UK LFL driven by clearance stock volumes in closure stores which diluted gross margins but cleared all inventory in these stores. This clearance activity has significantly impacted online full price sales as volumes sw...