Mothercare sales figures chilled by weather

The retailer saw its first drop in UK like-for-like sales for 19 quarters after a 1.6 per cent decline in the 11 weeks to March 27.

It said the snow disruption on UK high streets in January forced it to extend its winter sale, although the impact was offset by tight cost control.

Across the financial year, UK like-for-like sales rose three per cent as Mothercare's worldwide estate generated revenues of more than 1bn for the first time. Total group sales were up 5.9 per cent in the year and by 3.3 per cent in the fourth quarter.

Chief executive Ben Gordon said yesterday: "We continue to manage the business tightly in an uncertain consumer environment and are well placed as we enter the new financial year."

Analysts at Numis Securities had expected Mothercare to achieve a small improvement in UK like-for-like sales in the quarter.

As well as the weather impact, Numis said the company had to deal with the return of VAT to 17.5 per cent and tough comparisons with a year earlier.

The broker has dropped its forecast on profits from 40.6m to 39.8m but said it remained positive about Mothercare's "clear growth story".

Mothercare has seen strong growth overseas after international sales lifted 19.3 per cent in the fourth quarter and by 20.2 per cent across the year to the end of March.