Mothercare’s good and bad news

The group, which also owns the Early Learning Centre, said UK like-for-like sales fell 6.7 per cent in the 15 weeks to July 14, although analysts said this was in line with expectations. Mothercare said new chief executive Simon Calver’s cost-cutting plan, which includes a reduction in UK store numbers from 311 to 200 by 2015, is on track to deliver in the second half of the year.

The babycare firm, which slumped to a £103m loss in the year to March, said 16 stores had closed in the period and its recently revamped website had seen positive sales growth in the last five weeks.

Meanwhile, its international division, which has offset some of the weakness in the UK, saw sales increase 11 per cent as it opened another 25 stores, taking total overseas outlets to 1,053.

Mothercare’s trading update covers a tough period for retailers due to record levels of rain- fall.