Struggling UK childrenswear idea Mothercare has reported bought worldwide gross sales and a burgeoning on-line enterprise because it recovers its mojo.
Within the full yr to March 28, Mothercare says its pre-tax, underlying revenue rose 37 per cent to £13 million. Worldwide gross sales have been up 5.6 per cent – a good more healthy 12.four per cent on a continuing foreign money foundation – and on-line gross sales rose 18 per cent, accounting for 30 per cent of complete UK gross sales with over a 3rd of on-line orders collected in retailer and 82 per cent of on-line visitors now generated from cellular.
UK like-for-like gross sales have been up two per cent, and gross margin stabilised, the corporate stated in its annual assertion.
Complete UK house market gross sales have been down zero.9 per cent as an extra 31 underperforming shops have been closed. However the concentrate on increasing internationally is clearly bearing fruit: Mothercare stated complete promoting area was up 9 per cent, now numbering 1273 shops in 60 nations, with 52 new ones opened in the course of the monetary yr. Mothercare made its Korean debut, opening 4 shops.
Chairman Alan Parker stated the yr was certainly one of “main change” for the corporate, with a brand new CEO and CFO recruited, new financing preparations entered into with its banks, an uninvited takeover supply rebuffed and a efficiently accomplished a rights difficulty.
“I’m assured that we now have the appropriate management and plans to realize our clear potential of being a world main international retailer.”
CEO Mark Newton-Jones stated the corporate’s worldwide enterprise has delivered progress when it comes to area, gross sales and revenue, regardless of elevated financial and overseas foreign money headwinds.
“We’re making good progress towards all six pillars of our technique and we’ll proceed to construct from this platform within the yr forward. There’s nonetheless a lot to do and buying and selling circumstances might stay difficult, however we’ll keep singularly targeted on our imaginative and prescient of being the main international retailer for folks and younger youngsters.”
Mothercare’s worldwide enterprise now accounts for 64 per cent of the model’s worldwide area and 62 per cent of gross sales.
The corporate stated Asia, the place Mothercare now has 397 shops in 13 nations, continues to supply thrilling excessive progress alternatives.
“We opened our first 4 shops in South Korea, within the final quarter of the yr. This market provides vital alternative with a rich center class, good high quality retail area and a mature on-line market. Because the finish of the yr, we’ve got exited our three way partnership in India, which not wanted our help to develop the enterprise. India now operates on a pure franchise foundation. Area was up about 17 per cent year-on-year with mid-single-digit like-for-like gross sales progress. Robust fixed foreign money gross sales progress was diluted by ongoing foreign money devaluation which resulted in excessive single-digit gross sales progress in precise foreign money.
“Asia now has transactional web sites in China, India and Indonesia.”
Within the yr forward, Mothercare says it plans to proceed to develop its enterprise to turn out to be digitally led by investing in its on-line platform.
“On the similar time, in keeping with the plans we communicated final yr, we’ll modernise and refurbish 35-40 shops while closing 25-30 underperforming shops.”