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Mothercare shares rise after firm sees increase in UK sales Mothercare shares rise after firm sees increase in UK sales
(34 minutes later)
Shares in Mothercare have risen after it reported a rise in UK sales, boosted by online growth.Shares in Mothercare have risen after it reported a rise in UK sales, boosted by online growth.
In the UK, like-for-like sales at the company rose 6.5% in the 13 weeks to October, helped by a 20.4% rise in online sales.In the UK, like-for-like sales at the company rose 6.5% in the 13 weeks to October, helped by a 20.4% rise in online sales.
But internationally, sales were hit by "currency headwinds" prompting a 2.8% fall worldwide in the period. But internationally, sales were hit by "currency headwinds" prompting global sales to fall 2.8% in the period.
Chief executive Mark Newton-Jones said: "The second quarter results are in line with our full year expectations.Chief executive Mark Newton-Jones said: "The second quarter results are in line with our full year expectations.
"The UK is continuing to benefit from our strategic initiatives both online and in store, while International has seen the expected improvement in trading.""The UK is continuing to benefit from our strategic initiatives both online and in store, while International has seen the expected improvement in trading."
Mothercare's shares were up 3.6% at 230.25p in early trading as a result of the update.
Cost-cutting plan
Total group sales were down 7.1%, partly as a result of ongoing store closures as well as the fall in international sales.Total group sales were down 7.1%, partly as a result of ongoing store closures as well as the fall in international sales.
The company's international sales rose 5.6% in constant currencies, helped by an end of season sale which was delayed due to the timing of Ramadan and Eid.
However, exchange rate fluctuations meant that in actual currencies, Mothercare's international sales dropped 5.3% during the second quarter.
This will be seen as a reminder that the cost cutting exercise announced by Chief Executive Mark Newton-Jones last year, as a way to generate much needed cash and improve products, still has a way to go.This will be seen as a reminder that the cost cutting exercise announced by Chief Executive Mark Newton-Jones last year, as a way to generate much needed cash and improve products, still has a way to go.
During the quarter Mothercare's international business saw the opening of 11 stores. The company now has 1,310 stores, 173 of which are in the UK.During the quarter Mothercare's international business saw the opening of 11 stores. The company now has 1,310 stores, 173 of which are in the UK.
Mothercare's refurbishment programme will see 20% of UK stores modernised before Christmas.Mothercare's refurbishment programme will see 20% of UK stores modernised before Christmas.