Mothercare's profits fall as retailer ploughs on with turnaround plan

 
Helen Cahill
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The baby retailer recently lost its finance boss (Source: Getty)

Mothercare announced a drop in profits today as the retailer entered the second phase of its turnaround.

The figures

Annual profits fell from £9.7m to £7.1m. Like-for-like sales in the UK grew by 1.1 per cent, but fell by 4.1 per cent internationally.

Total group sales fell 2.2 per cent, from £682.3m to £667.4m.

Why it's interesting

Mothercare announced recently that its chief financial officer, Richard Smothers, was stepping down, and this morning gave some more details on the reason for his departure.

Speaking awkwardly on the BBC Today Programme this morning, Mothercare boss Mark Newton-Jones said Smothers was "absolutely not" leaving out of a lack of confidence in Mothercare.

Read more: Mothercare finance boss to step down after tough year for the baby retailer

"Richard has erm, ah, been appointed to a new role," he said.

"I can't tell you what that is, there's a confidentiality attached to that agreement but he's moving on to a larger organisation. We're delighted for him. It's good news for Richard, and we'll find a new Richard."

What Mothercare said

Newton-Jones said in a statement: "Following a difficult start to the year, the UK recovered in the second half, returning to underlying profit for the first time in six years.

"Through our work over the past three years and with an extensive database over over 3m, we have developed a far deeper understanding and insight into our customers and the importance of our brand to them."

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