Mothercare revenues down 13% in half-year results
Mothercare’s half year results for the 28 week period to 6 October 2018 saw revenues drop by 13% to £295m.
Worldwide sales decreased by 9.8% to £566m, compared with £627m during the period last year, and group adjusted loss before taxation was reported to be £6.2m.
In July, the British retailer said it would look to close some 60 of its 137 stores leading to 900 job losses. It said it would also seek reduced rents for 19 of its stores through a CVA. The group recently axed around 200 staff from its head office in an attempt to cut costs and save up to £20m.
The job cuts are part of Mothercare’s restructuring program and 50 new jobs are expected to be created in the department, bringing the net job losses to roughly 150.
CEO Mark Newton-Jones said: “Over this period, we have continued our relentless focus to transform Mothercare into a business that has a sustainable and relevant future for its global customer base.
“We have completed the capital restructuring of the business, the UK store closure programme is well underway and due for completion earlier than planned, we are making our sourcing operations more efficient and our cost-saving initiatives are well on schedule.”
He added: “This momentum has allowed us to focus on revising the overall structure of the Group, something which will help drive a greater focus on becoming a stronger global brand, with improved product design, marketing and distribution of Mothercare products around the world.
“At the same time, in the UK, the team will be singularly focused on managing trading and operations, as a typical franchisee would, with the objective of bringing the UK business back to profitability. Thereafter we are confident that our strategy will ultimately reinvigorate the business and restore Mothercare as a leading global specialist for parents and young children.”
