Baby goods retailer Mothercare said full-year profit jumped 51 percent as the turnaround plan for its troubled British business made progress, sending its shares up as much as 9 percent.
LONDON, United Kingdom — Baby goods retailer Mothercare said full-year profit jumped 51 percent as the turnaround plan for its troubled British business made progress, sending its shares up as much as nine percent.
Underlying profit before tax rose to £19.6 million for the 52-week period ended March 26, from £13 million a year earlier, it said.
Sales at UK stores open over a year rose 3.6 percent, it said, with total UK sales up 0.3 percent to £459.7 million.
Mothercare is trying to revive its business in Britain, which has suffered heavy losses as margins have been eroded over the past few years, partly due to cheaper competition from rivals such as AB Foods’ unit Primark and online retailers like Amazon .
However, concerns still remain over its overseas business, in part due to currency swings.
Sales at international stores open more than a year were down 4.5 percent for the year.
“Despite the challenges faced in our international markets, where sales and profit have been impacted by economic and currency headwinds, we are still opening new space,” the company said in a statement.
Mothercare’s international retail space grew 4.6 percent as it ended the year with 1,310 stores.
At 0716 GMT, shares were up nine percent at 19.5 pence on the London Stock Exchange.
By Aastha Agnihotri; editor: Sunil Nair.