This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-25649283

The article has changed 7 times. There is an RSS feed of changes available.

Version 2 Version 3
Mothercare share price falls 31% after profit warning Mothercare share price falls 31% after profit warning
(35 minutes later)
Shares in Mothercare have fallen 31% following a profit warning as a result of Christmas discounting in the UK and weak economic conditions overseas.Shares in Mothercare have fallen 31% following a profit warning as a result of Christmas discounting in the UK and weak economic conditions overseas.
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 volatile international markets had been behind the sales fall.Chief executive Simon Calver said "difficult" trading conditions in the UK and volatile international markets had been behind the sales fall.
In the UK, weaker footfall and price cutting hit sales and margins.In the UK, weaker footfall and price cutting 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.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."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.
UK restructuring planUK restructuring plan
Ishaq Siddiqi, market strategist at ETX Capital, said the company's online services had also suffered a "big drop" after it decided not to repeat last year's free delivery offer.Ishaq Siddiqi, market strategist at ETX Capital, said the company's online services had also suffered a "big drop" after it decided not to repeat last year's free delivery offer.
He said the move was a "bad call" by Mothercare.He said the move was a "bad call" by Mothercare.
Mr Siddiqi added: "Management now have to figure out a turnaround strategy or face the real likelihood of a fate similar to that of Comet and Woolworths."Mr Siddiqi added: "Management now have to figure out a turnaround strategy or face the real likelihood of a fate similar to that of Comet and Woolworths."
Mothercare has branches in 60 countries but has recently shut 63 in the UK as part of its restructuring programme. Mothercare acquired the owner of the Early Learning Centre (ELC), Chelsea Stores Holdings, in 2007.
In November last year the company posted a £2m underlying profit for its half-year results and said its restructuring plan was beginning to work. Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers said Mothercare's takeover of the ELC business continued to cause difficulties with the toy market "extremely tough".
He said: "The full extent of the task ahead for the relatively new chief executive looks to have been laid bare."
Mr Bowman said previously "favourable analyst opinion" would "likely be reined in".
Mothercare has branches in 60 countries but has recently shut 63 in the UK as part of its restructuring programme, leaving it with 237 stores in Britain.
In November last year the company posted a £2m underlying profit in its half-year results and said its restructuring plan was beginning to work.