Mothercare boosted by Ramadan sales as weather hits in UK

The early arrival of Ramadan this year helped Mothercare’s turnaround stay on course and offset weakness on home soil, the retailer said today.

Mothercare said its international arm, hit by currency swings and the slumping oil price, was “materially helped” by the earlier timing of the Muslim holy month, which ends with feasts and gifts. Sales rose 3.9% in the 15 weeks to July 9, but boss Mark Newton-Jones warned of more volatility overseas.

In the UK, the retailer was forced to bring forward end-of-season sales “to clear stock following adverse weather”. That lifted domestic like-for-like sales by 1.2%, though including the effect of store closures, UK sales fell 2.1%.

Newton-Jones, who has been trying to revive the mother-and-baby retailer by refurbishing stores and growing online sales, said there had been no immediate reaction to the Brexit vote.

He added that Mothercare had hedged both dollar purchases and royalty receipts and expects “limited impact on our financial results this year”.

“Our focus remains firmly on the turnaround of our business and putting strong foundations down for the future.”