No kidding around as website revamp propels Mothercare to 18-month high

● Boss says group is ‘firmly focused’ on building businesses in UK and overseas

A website overhaul has helped underpin Mothercare’s strongest performance for 18 months.

The babycare and children’s clothing stalwart saw like-forlike sales across the UK jump by 4.5 per cent in its final quarter to 25 March thanks to a 13.6 per cent surge in online sales.

That marked a sharp rise on the 1 per cent growth seen in its Christmas quarter and represents the group’s highest sales hike since the second quarter of 2015/16.

Inatradingupdateyesterday, it highlighted a good response to its revamped website, with online sales now accounting for about two-fifths of UK revenues, while pointing to a positive response to its spring/ summer ranges.

The firm is also seeing the benefits of a store refurbishment programme, having giv- en 70 per cent of its UK estate a makeover during the past two years.

A boost from the Brexit-buffeted pound on the group’s overseas earnings offset ongoing tough trading in international markets, where sales leapt 15.4 per cent in the 11 weeks to 25 March but slipped 1.7 per cent on a constant currency basis.

Mothercare said sales were strong across China, Indonesia and Russia, helped by exchange rates, though it noted that economic conditions in the Middle East remained “challenging”.

Numis analyst Matthew Taylor said: “UK [like-for-like sales] continued to improve during Q4, while the international performance steadied overall as hoped against weaker comparatives.

“The group remains on track broadly to meet market profit expectations and we leave our mid-range [profit before tax] estimates for full-year 2017 andfull-year2018unchanged.”

Mark Newton-jones, chief executive of Mothercare, described the quarterly performance as “solid”.

He told investors: “We have made further progress in the period, with the UK performing particularly well on a likefor-like basis.

“Customers’ response to our spring/summer ranges has been positive, as has the feedback on the new website and our new store environment.

“We are firmly focused on our strategy to build our businesses both here in the UK and internationally and our vision remains clear: to be the leading global retailer for parents and young children.”

Newton-jones said in November the firm had negotiated with suppliers to reduce the impact from the pound’s plunge by a third, while the firm would take on a third of the extra costs, with the rest passed on to customers.