Mothercare PLC
03 April 2008
3 April 2008
MOTHERCARE PLC
FOURTH QUARTER TRADING UPDATE
Mothercare plc today issued an update on trading for the fourth quarter (11
weeks) and the full year (52 weeks) ended 29 March 2008.
This trading update incorporates the sales of the Early Learning Centre since
acquisition. For ease of analysis, certain figures are also presented on a
'comparable' basis(1).
Group performance
This has been a transformational year for the Mothercare and the Early Learning
Centre brands. The integration of the Early Learning Centre is progressing well
and our plan for optimising the property portfolio of the group is nearing
completion. A full update on the integration, together with the associated
benefits and costs, will be set out with our preliminary results on 22 May 2008.
• Group sales in the fourth quarter up 31.6% (up 3.9% on a comparable basis)
• Group sales for the full year up 35.1% (up 4.5% on a comparable basis)
UK performance
We have seen a solid performance from our UK stores business and a particularly
strong performance from Direct in Home. Gross margins have continued to benefit
from tight stock control, favourable exchange rates and the success of our
sourcing strategy.
• UK like-for-like sales(2) in the fourth quarter up 2.9%
• UK like-for-like sales for the full year up 2.9%
• UK sales in the fourth quarter up 31.7% (up 2.4% on a comparable basis)
• UK sales for the full year up 36.1% (up 2.7% on a comparable basis)
• Direct in Home sales in the fourth quarter up 79.2% (up 24.5% on a
comparable basis)
• Direct in Home sales for the full year up 106.7% (up 19.7% on a comparable
basis)
International performance
Our International strategy is delivering results. Sales are growing rapidly and
the two brands are developing strongly in 48 countries.
• 77 new franchise stores opened in the year, giving a total of 494 stores
• Franchisee like-for-like sales up 12.0% in both the second half and full
year
• International sales in the fourth quarter up 31.3% (up 10.1% on a
comparable basis)
• International sales for the full year up 30.0% (up 14.6% on a comparable
basis)
Ben Gordon, Chief Executive said:
'This is another strong performance for the recently enlarged Mothercare group,
which is benefiting from our strategy of developing Mothercare as the world's
leading specialist parenting brand.
'The multi-channel UK business has performed well, particularly Direct in Home,
and the integration of the Early Learning Centre is on track. International
continues its strong momentum, further strengthened by the addition of the Early
Learning Centre brand, with a total of 494 franchise stores operating today in
48 countries.'
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 the Early Learning Centre 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
the Early Learning Centre inserts in Mothercare stores are included where they
are trading in existing Mothercare space. Franchisee like-for-like sales are
estimated. Like-for-like sales are presented on a comparable basis. Full details
are set out below:
Fourth Quarter Second Half Full Year
11 Weeks to 24 Weeks to 52 Weeks to
29 March 2008 29 March 2008 29 March 2008
Total UK sales* +2.4% +2.7% +2.7%
Total UK like-for-like sales* +2.9% +3.2% +2.9%
UK store sales +0.8% +1.5% +1.3%
UK store like-for-like sales +1.0% +1.9% +1.6%
• UK sales and UK like-for-like sales include Direct in Home sales.
In the third quarter 2006/07 the company introduced, for the first time, two new
sales measures which include Direct in Home; being 'Total UK sales' and 'Total
UK like-for-like sales.' These are considered a more meaningful measure of sales
growth in a multi-channel business. As previously indicated, the measures of 'UK
store sales' and 'UK store like-for-like sales', which have additionally been
presented for the past five trading statements, will no longer be included from
2008/09.
This information is provided by RNS
The company news service from the London Stock Exchange
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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