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| Mothercare issues profit warning | Mothercare issues profit warning |
| (35 minutes later) | |
| Mothercare has issued a profit warning after being hit by Christmas price discounting in the UK and weak economic conditions in overseas markets. | Mothercare has issued a profit warning after being hit by Christmas price discounting in the UK and weak economic conditions in overseas markets. |
| Total worldwide group sales fell 6.1% in the 12 weeks to 4 January, with UK like-for-like sales down 4%. | Total worldwide group sales fell 6.1% in the 12 weeks to 4 January, with UK like-for-like sales down 4%. |
| Chief executive Simon Calver said "difficult" trading conditions in the UK and volatility in international markets had been behind the sales fall. | Chief executive Simon Calver said "difficult" trading conditions in the UK and volatility in international markets had been behind the sales fall. |
| In the UK, weaker footfall and price cutting had hit sales and margins. | In the UK, weaker footfall and price cutting had hit sales and margins. |
| Mr Calver said the retailer's full year profits were "likely to be below the current range of market expectations". | Mr Calver said the retailer's full year profits were "likely to be below the current range of market expectations". |
| He said Mothercare's international markets had also been hit by deflation. | |
| "In some of our larger markets such as Russia and the Middle East we have also experienced some unseasonal weather which impacted sales," he added. | |
| Mothercare has branches in 60 countries but has recently shut 63 in the UK as part of its restructuring programme. | |
| The profit warning is a contrast to the £2m underlying profit Mothercare posted for its half-year results in November last year, as the company said its restructuring plan was beginning to work. |