Mother and baby products retailer Mothercare said reduced losses in its home market and growing international sales helped the group to its first half-year underlying profit since 2010/11.
Mothercare, which operates in 60 countries, said underlying pretax profit for the 28 weeks to October 12th was £2 million, up from a loss of £1.8 million a year ago.
In the UK, where the firm is in the middle of three-year turnaround plan to revitalise a loss-making business hit hard by fierce competition from supermarkets and online rivals, underlying losses fell 12 per cent to £14.9 million.
Underlying international profits rose 13.5 per cent to £25.2 million, helped by a net 87 stores opening in the period.
Sales at British stores open over a year fell 1.4 per cent in the period, improving from a 3.4 per cent fall last year, and were down 7.5 per cent in total due to having less 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. (Reuters)
