Shares in the maternity and childrens-wear chain fell 17p to 45p as it warned that annual profit would be much lower, at £1-5million, than the previously anticipated £10million and dampened any UK trading condition improvement hopes.
It follows last week’s dismal trading update from the department store Debenhams. Mothercare chief executive Mark Newton-Jones admitted the performance had been “challenging” and pointed to weaker website traffic as well as fewer shoppers visiting stores as like-for-like sales fell 7.2 per cent in the 12 weeks to December 30.
Online sales were down 6.9 per cent. He said: “We took a conscious decision to remain at full price to protect our brand positioning prior to Christmas but to then discount more heavily in the end-of-season sale.
“We have subsequently seen good progress with strong sales on our autumn/winter clearance lines albeit these carry lower margins and will lead to a further reduction in full-year margin.”
Source : https://www.express.co.uk/finance/city/902150/mothercare-annual-proftis-share-price-latest166