Mothercare plc Cuts Space According to BAC Company Report
25 Jul 2012 • by Natalie Aster
LONDON – The appointment of a new CEO, Simon Calver, will bring more reductions to Mothercare according to the company’s latest interim report. In FY FY2011/12 Mothercare decreased its stock levels in UK by 12% and closed a range of loss-making stores. The strategy stipulates further decline in store number and reductions in operating costs by ?20 million.
The last financial year was difficult for Mothercare. Weak consumer demand in UK was offset by growing international sales and revenues from franchisees/JVs. But unprofitable British stores spoiled net results of the enterprise. Revenue increased by 2.4% to GBP 812.7 M, gross profit declined by 20.8% to GBP 44.3 M, both operating and net income fell below zero point to GBP (102.5) and GBP (91.8), respectively. UK retail sales were still the most significant revenue contributor – they amounted 65% of all sales. International retail sales brought 30.2%, UK wholesale sales and International wholesale sales added 4% and 0.8%, respectively.
Founded in 1961 and headquartered in Hertfordshire (UK), Mothercare plc engages in retail activities under two brands: Mothercare and Early Learning Centre (ELC). The former unites various goods for young mothers and mothers-to-be: Maternity clothes, Pushchairs, Nursery, Car seats & carriers, Kids clothing, Feeding utilities and so on. The latter offers a spectre of toys for newborns to over-six-year-old children. The company also operates a specialized web-site gurgle.com that contains useful information for moms and moms-to-be as well as allows interactive communication between them. Mothercare plc is public and trades on London Stock Exchange under the ticker MTC.
More details on the company’s activities, risks, strengths, financials and experts’ forecasts can be found in the report “Mothercare plc Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis” recently published by Market Publishers Ltd.
Mothercare plc Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis
Date: Jun, 2012
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