Mothercare shares plunge 24pc because it warns on profits after Christmas sales drop

Shares in Mothercare stepped with a quarter today after it cautioned on profits carrying out a slide in Christmas sales.

The store, which sells pushchairs, vehicle seats and baby clothes, stated United kingdom sales plummeted 11pc within the 12 days to December 30. Which was partially because of store closures but, even at individuals that continued to be open, sales dropped 7.2pc.

Internet sales, normally positive even at most troubled of shops, fell 6.9pc.

Leader Mark Newton-Johnson stated: “Once we signalled in November, there’s been a softening within the United kingdom market with lower footfall and web site traffic leading to lower spend both in stores an internet-based.”

Mr Newton-Johnson stated Mothercare prevented heavy discounts within the increase to Christmas however that clearance sales for the finish from the period would knock its twelve month margins.

He added: “Going forward, we’re not anticipating any improvement within the short-term market conditions for that United kingdom as well as on this basis the adjusted group profit for that year will probably be in the plethora of £1[m]-5m.”  

Mothercare reported “challenging” worldwide buying and selling, with sales lower 3pc when adjusted for currency fluctuations, but stated revenues in Russia, its largest overseas market, and also the Middle East had came back to growth.

Shares in Mothercare were lower 24.2pc at 47p in morning trade.

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