Mothercare PLC
16 January 2008
16 January 2008
MOTHERCARE PLC
THIRD QUARTER TRADING UPDATE
Mothercare plc today issued an update on trading for the 13 weeks to 11 January
2008.
This trading update incorporates the sales of the Early Learning Centre ('ELC')
for the 29 weeks since acquisition. For ease of analysis, certain figures are
also presented on a 'comparable' basis(1).
Group performance
. Group sales in the third quarter up 61.0% (up 3.4% on a comparable basis)
. Group sales year-to-date up 35.5% (up 4.3% on a comparable basis)
The integration of the two businesses is progressing well and we are pleased
with the performance of the 21 ELC inserts in Mothercare stores over the peak
trading period.
UK performance
. UK like-for-like sales(2) in the third quarter up 3.4%
. UK sales in the third quarter up 68.3% (up 2.9% on a comparable basis)
. UK sales year-to-date up 36.7% (up 2.4% on a comparable basis)
+---------------------------+----------------+-----------------+
|Comparable Basis |Third Quarter |Year-to-Date |
+---------------------------+----------------+-----------------+
|UK sales* |+2.9% |+2.4% |
+---------------------------+----------------+-----------------+
|UK like-for-like sales* |+3.4% |+2.8% |
+---------------------------+----------------+-----------------+
|UK store sales |+1.9% |+1.2% |
+---------------------------+----------------+-----------------+
|UK store like-for-like |+2.5% |+1.6% |
|sales | | |
+---------------------------+----------------+-----------------+
* UK sales and UK like-for-like sales include Direct in Home sales, which were
up 201.6% (up 11.9% on a comparable basis) in the third quarter and up 111.7%
(up 17.2%) year-to-date.
International performance
. 66 new overseas franchise stores opened year-to-date, giving a total of 483
stores in 48 countries.
. International sales in the third quarter up 24.5% (up 7.4% on a comparable
basis due to the timing of shipments which is expected to unwind in Q4)
. International sales year-to-date up 29.5% (up 16.1% on a comparable basis)
Ben Gordon, Chief Executive said:
'This is a strong performance for the newly enlarged Mothercare group over the
Christmas trading period. The group is benefiting from our strategy of
positioning Mothercare as the leading specialist brand for parents around the
world. This is now strengthened by the Early Learning Centre, the integration of
which is progressing well.
'In the UK, positive store sales growth was boosted by the strong online
business, and the International business continues to grow rapidly. Whilst there
remains a degree of caution about the UK consumer environment, we expect profits
(3) for the full financial year to be near the top end of analysts'
expectations.'
Enquiries to:
Mothercare plc
Ben Gordon, Chief Executive 01923 206001
Neil Harrington, Finance Director 01923 206187
Brunswick Group
Catherine Hicks/Anna Jones 020 7404 5959
Note 1
'Comparable' basis assumes that ELC had been owned for the same period in both
the current and prior years and excludes discontinued activities.
Note 2
'Like-for-like' sales are defined as sales growth for stores that have been
trading continuously from the same selling space for at least a year. Sales from
ELC inserts in Mothercare stores are included where they are trading in existing
Mothercare space. Like-for-like sales are presented on a comparable basis.
Note 3
'Profit' is defined as Group Underlying Profit Before Taxation, which excludes
profit on disposal of property interests, amortisation of intangible assets
(excluding software), one-off integration costs and the non-cash IAS 39
adjustment. The results of ELC are included only from date of acquisition
('statutory' basis) and therefore exclude ELC's pre-acquisition EBITA loss of
£4.1 million in the current financial year.
Fourth quarter trading update
Mothercare plc expects to issue a fourth quarter trading update on 3 April 2008
ahead of its preliminary results announcement for the 52 weeks ended 29 March
2008 on 22 May 2008.
This information is provided by RNS
The company news service from the London Stock Exchange
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