LONDON (dpa-AFX) - Shares of Mothercare Plc (MTC.L) climbed around 13 percent in the London trading after the mother and baby retailer reported Thursday a 0.6 percent rise in total group sales for the fourth quarter, boosted by strong international performance in constant currencies, despite weak UK sales. Looking ahead, the company said it expects fiscal 2014 underlying profit to be in line with current market forecasts.
In the 12 weeks to March 29, worldwide network sales dropped 2.5 percent. Including Mothercare Australia Limited, total group sales were up 0.7 percent, while worldwide network sales were down 3.6 percent.
International retail sales in moving currencies dropped 1.8 percent as the increasing level of currency devaluation has had an adverse impact, while sales increased 9.8 percent in constant currencies.
In the UK, total sales dropped 4 percent and like-for-like sales edged down 0.3 percent. However, direct in home sales grew 1.8 percent. UK like-for-like sales and margins are in line with expectations for the quarter, despite continued pricing-pressure in Home and Travel, the company noted.
Chairman Alan Parker said, 'After a difficult Q3, it is encouraging to note that we have seen some improvement in trading for both International and the UK. International has continued to increase space and constant currency sales growth is stronger than the previous quarter, with positive like-for-likes. However the pace of currency devaluation, as highlighted in January, has increased with all four regions impacted.'
In the year 2014, worldwide network sales increased 0.5 percent, while total Group sales were down 2.6 percent. Internatina retail sales in constant currencies grew 9.3 percent, while UK sales fell 7.5 percent.
Mothercare said it now operates from 4.4 million sq.ft., up 5.8 percent year-on-year, and has 1,441 stores across 60 markets worldwide
The company noted that the adverse currency impact is expected to persist into next year.
Parker added, 'We remain profitable at Group level and are focused on eliminating UK losses whilst also continuing to exploit our growth potential across our International markets. In the UK, we expect the environment to remain competitive and promotional. In International, we expect the effects of currency devaluation to continue into the new financial year.'
In London, Mothercare shares are currently trading at 185.11 pence, up 21.86 pence or 13.39 percent.
Copyright RTT News/dpa-AFX