World’s woes hit Mothercare but UK is recovering

MOTHERCARE today saw its shares plunge 15% after currency swings and the slumping oil price meant sales at its international business plummeted in its fourth quarter.

Shares in the retailer, which is also behind the Early Learning Centre chain, fell 29.5p to 159.5p after it said international retail sales fell 9.7% on a constant currency basis in the 11 weeks to March 26.

Weakness in consumer confidence hit in China, it said, whereas its struggles in the Middle East were caused by oil’s free-fall. Currency headwinds took their toll in Europe and Latin America, it added.

In the UK, however, its turnaround was bearing fruit, with like-for-like sales up 2.1%

Chief executive Mark Newton-Jones said the company — which recently launched the My Babiie range of pushchairs by The Only Way is Essex’s Billie Faiers — would wait for the troubles abroad to ease.

“We’re not retrenching or battening down the hatches here, it’s the opposite. There’s opportunity to expand. We recognise the market is soft but we know at some point it will come back.”

Peel Hunt said it was a “cyclical setback” and that Mothercare was “on track to deliver a transactional online platform across the international business in 12 to 18 months’ time, which we believe will be a major catalyst for the business”.