Mum's the word as Early Learning reaps rewards

Published on Thursday 16 July 2009 21:20

BABYCARE and children's clothing chain Mothercare has unveiled a fresh rise in sales amid strong demand for summer products.

UK like-for-like sales rose 5.1 per cent in the 15 weeks to 10 July as the retailer enjoyed further positive trading at its Early Learning Centre (ELC) business.

The improvement builds on the 1.4 per cent rise in same-store sales seen in the company's last financial year, when profits rose 12.4 per cent to 37.1 million. Sales at Mothercare's international franchise arm, which now boasts almost 650 overseas stores, jumped 32.7 per cent as the division benefited from a weak pound and new stores.

Speaking ahead of the company's annual meeting yesterday, chairman Ian Peacock said growth in the UK business reflected the success of ELC ranges within Mothercare stores and strong demand for summer items.

He added: "Whilst this has been a positive start to the year, we continue to manage the business tightly in an uncertain global consumer environment."

Mothercare, which acquired ELC for 85m in June 2007, said its summer sale was going to plan, leaving it with a clean stock position at the start of the new season.

A partnership with musician and presenter Myleene Klass for the Baby K range had been successful in the UK and internationally, and Mothercare plans to extend the label into its home and travel sectors.

Mothercare has more than 1,000 stores in 51 countries, with plans to open 100 more international shops during this year.

Numis Securities described the trading update as excellent and said the UK sales growth figure of 5.1 per cent comfortably beat market expectations for a figure closer to 2 per cent.