For Mothercare, Business in Latin America and the Middle East was weaker than Asia and Europe

British baby goods retailer Mothercare reported a slowdown in first-quarter sales and said shaky consumer confidence in some Middle Eastern markets had hurt demand at its international arm, sending its shares down almost 8 per cent, reported Reuters.

Profits from international business of Mothercare's franchises, which has some 1,300 stores, have just kept the group in the dark in recent years after its core UK arm suffered heavy losses in part due to cheaper competition, further stated Reuters.

On Thursday, Mothercare said that the international retail sales fell 1.3 per cent in constant currency in the 15 weeks to July 11, down from an 11.4 per cent rise in its previous quarter and despite 8 per cent growth in new space year on year.

Reuters added, Business in Latin America and the Middle East was weaker than Asia and Europe, it said, with the Middle East impacted by weak consumer demand, fewer promotions and the delay into its second quarter of a sale after Ramadan and Eid.

Initiatives such as store revamps, fewer online sales and product range improvements helped improve UK gross margins and raise UK like-for-like sales by 1.3 per cent, although that lagged first-quarter growth of 5.1 per cent.

Total UK sales fell 0.9 per cent, reflecting store closures as the group downsizes. Mothercare said overall group trading was as expected while its shares were up by 33 per cent in the past year and down by 7.7 per cent at 264 pence.