- Prachi Singh |
Mothercare Plc, for the 13 week period to January 5, 2019, said UK like-for-like sales declined 11.4 percent, reflecting a combination of the difficult consumer backdrop and the aggressive discounting activity undertaken in the prior year that inflated sales in that period. The company added that online sales in the UK declined 16.3 percent impacted by lower website footfall, lower iPad sales in store due to the store closure programme and a smaller Toy offer with less discounting. International retail sales were down 1.1 percent in constant currency and 3.2 percent in actual currency.
"Whilst the UK continues to be challenging, in part as a result of our planned restructuring, we are still on course to deliver the necessary transformation. Crucially, the group continues to be disciplined in its management of cash and is progressively reducing its net bank debt. Our UK store closure programme continues apace and is ahead of schedule, with 36 stores currently transitioning for closure, meaning we will have a total UK estate of 79 stores by the end of March 2019," said Mark Newton-Jones, Chief Executive Officer of Mothercare in a statement.
The company added that it is on track with strategic transformation plan to deliver at least 19 million pounds of annualised cost savings. Mothercare also completed the sale and leaseback of the UK head office, further improving the company's net debt position, following receipt of the 14.5 million pounds consideration.