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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare - UK market stabilises

September 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MTC
  • Price:
  • 429p
The shares came within an ace of hitting £5 for the first time as Royal Baby mania helped sentiment. Not that Mothercare's business needed a kick as even in a tough market its Q1 showed UK like-for-like sales only falling 0.9% for the first 15 weeks to 13 July (against forecasts for a 2.5% decline). The performance was boosted by near 15% growth in online sales. Meanwhile clothing sales and volumes benefited from launch of new ranges, particularly “value essentialsâ€, while Home & Travel has become increasingly promotional and toys are seasonally quiet. Mothercare closed a further 13 loss-making stores (4 Mothercare, 9 Early Learning Centres) in Q1 leaving 242 stores (192 Mothercare, 50 ELCs) and cost savings, including fur ...

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