Maternity specialist Mothercare has revealed ambitious new international targets as it shows off its Indian business to investors.
The retailer revealed that overseas network sales are expected to double to £1bn by 2014 and targeted a profit margin rise of between 20 and 30 basis points a year – up from between 10 and 20 previously.
Mothercare said it will open 175 shops internationally this year, compared with previous guidance of 150, and from next year intends to open 150 per annum rather than 100. There will be at least 200 stores in India by March 2015 compared to 70 at present.
Seymour Pierce analyst Kate Calvert, who is on the Mothercare trip, said there is a big opportunity in India but sounded a note of caution. She maintained: “While longer term Mothercare will be a great play on global growth, we remain concerned over the underperformance of its UK business which still contributes the majority of the company’s profits.”
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