Yahoo Finance Mothercare Trims Losses To £11m In First Half
Mothercare (LSE: MTC.L - news) reduced its overall losses as its plan to close non-profitable UK stores and open more shops abroad starts to bear fruit.
In the 28 weeks to October 12 losses were reduced from £28.6m in the same period last year to £11m as the mother and baby products retailer grew international sales.
It said reduced losses in Britain helped the group to its first half-year underlying profit since 2010/11 of £2m from a loss of £1.8m a year ago.
Mothercare, which operates in 59 countries, is in the middle of a three-year turnaround plan to revitalise its UK business - hit hard by fierce competition from supermarkets and online rivals.
Sales at British stores open over a year fell 1.4% in the period, improving from a 3.4% fall last year and were down 7.5% in total due to having 18 fewer stores open.
Chief executive Simon Calver, who is closing unprofitable stores and investing in products and delivery to improve fortunes in the UK, said he expected consumer spending in Britain to remain subdued in the second half of the year.
"We continue to target a return to profit in the UK and the reduced UK operating loss this half year is a step in the right direction," he added.
Sky News revealed in July how the group was considering the sale of its Early Learning Centre operation , as it bids to return to profit in 2015.
Mr Calver said today its Christmas plans were on track with a third of its product range being new for the third successive year.
It has been Mothercare's growth abroad that has driven its improved financial performance - helped by a net 87 stores opening in the period.
It now has 1,156 stores in its empire.
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