UK retailer of children's and baby products Mothercare reported a 3.7% annual increase in sales last week, led by demand at the company's international stores which are opening in countries where birth rates are higher than in Britain. Revenue from international franchise outlets gained 20% for the year ended 1 April. Total UK sales grew by 1.5%, while sales at its British stores open at least a year fell 0.3%. Mothercare is struggling to grow sales in Britain as consumers reduce their spending. The company is opening stores outside its home market to capitalise on increased spending power among middle classes in countries such as Russia and India. Over 12% of revenue came from outside the UK last year. The shares have gained 26% in the past year, increasing the company's market value to /360m.

EasyJet

It's not surprising that shares in EasyJet were upgraded by ABN Amro to 'buy' from 'hold' after the stock's price tumbled last week when FL Group of Iceland sold its 16.9% stake in the low-cost airline.

The shares fell 8.7% last Wednesday after FL Group said it sold its stake. EasyJet carried 7.1% more passengers last month after adding routes across Europe. The airline flew 2.75 million people in March compared with 2.57 million a year earlier. However, the load factor, or proportion of seats filled, fell to 86.3% from 91.1. The airline has a target of flying 122 aircraft by 30 September compared with 109 planes a year earlier. EasyJet opened its sixteenth base last month in Milan Malpensa. ABN said it expects EasyJet's sales to almost double to £2.04bn (/2.92bn) from £1.09bn (/1.56) in 2004.