Business
Mothercare Plc : Trading Statement
Mothercare Plc : Trading Statement.
About this update from Mothercare Plc
[{"type":"text","content":"\n Mothercare Plc : Trading StatementMOTHERCARE PLCQ4 trading updateFURTHER IMPROVEMENT IN UK - TANGIBLE RESULTS FROM NEW STRATEGYINTERNATIONAL MARKETS HOWEVER STILL CHALLENGINGFY2016 GROUP UNDERLYING PROFIT WITHIN RANGE OF EXPECTATIONS Mothercare plc, the leading global retailer for parents and young children, today issues the following trading update, which covers the 11 week period to 26 March 2016.UKUK like-for-like sales were up 2.1% during Q4 with support from online sales which were up 5.6%. Online sales now account for c35% (LY: c30%) of total UK salesContinued focus on full price sales led to another quarter of stronger gross marginsWe ended the quarter with 170 stores (162 Mothercare and eight ELC), of which 56 stores (almost 40% of space) were trading in the new modern refitted format Total UK sales were up 0.8% as both online and store sales benefitted from the ongoing strategy, despite the planned (6.4%) year-on-year reduction in space InternationalInternational continues to be affected by ongoing economic and currency headwinds. Retail sales in constant currency were down (9.7%) with currency further impacting retail sales in actual currency which were down (10.8%)All four regions saw a reduction in both constant and actual currency sales. In the Middle East consumer sentiment was impacted by the sustained lower oil price, resulting in a significant decline in constant currency sales. In Asia, China in particular, was affected by weakening consumer confidence. Europe and Latin America were impacted by adverse currency movesSpace was up 4.6% year-on-year. Latin America saw an increase in store numbers, but a small reduction in space. Europe saw a similar reduction as we rationalised unprofitable space. We continue to see opportunities in Asia and the Middle East and grew space despite current economic conditionsWe ended the quarter with 1,310 stores (947 Mothercare and 363 ELC) and 3.0m sq.ft. of retail space Group performance for 11 weeks to 26 March 2016 11 weeks:52 weeks: FY2015 FY2016 26 March 2016 Q4 Q1 Q2 Q3 % change year-on-yearUK Q4Q4 YTD Total UK sales 1.5 (0.9) 1.8 (0.1) 0.8 0.3 Online sales 31.8 23.9 20.4 11.8 5.6 15.2 UK like-for-like sales (1) 5.1 1.3 6.5 4.2 2.1 3.6 UK space (change in sq.ft.) (4.5) (5.3) (7.4) (6.1) (6...