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You can find the current article at its original source at http://www.theguardian.com/business/2014/jan/08/mothercare-shares-plunge-christmas-profit-warning
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| Mothercare shares plunge 30% on Christmas trading profit warning | Mothercare shares plunge 30% on Christmas trading profit warning |
| (about 1 hour later) | |
| Mothercare shares plunged on Wednesday after it warned that poor pre-Christmas trading would cause it to miss annual profit forecasts. | Mothercare shares plunged on Wednesday after it warned that poor pre-Christmas trading would cause it to miss annual profit forecasts. |
| The mother and baby retailer's shares fell more than 30% to 297p after it revealed weak trading across its business. | The mother and baby retailer's shares fell more than 30% to 297p after it revealed weak trading across its business. |
| Numis, one of Mothercare's house brokers, more than halved its estimate for annual pre-tax profit to £8m from an earlier forecast of £17m and put its "add" recommendation under review. | Numis, one of Mothercare's house brokers, more than halved its estimate for annual pre-tax profit to £8m from an earlier forecast of £17m and put its "add" recommendation under review. |
| UK sales in stores open a year or more fell 4% in the 12 weeks to 4 January and total UK sales fell 9.9%. The group's international business was also hit by weakening currencies and economic conditions in Russia, Indonesia and India – three of its five biggest markets. Total group sales were down 6.1%. | UK sales in stores open a year or more fell 4% in the 12 weeks to 4 January and total UK sales fell 9.9%. The group's international business was also hit by weakening currencies and economic conditions in Russia, Indonesia and India – three of its five biggest markets. Total group sales were down 6.1%. |
| Simon Calver, Mothercare's chief executive, said: "In the UK, our stores suffered similar Christmas trading pressures to those reported elsewhere. Customer service scores continue to improve year on year but weaker footfall and higher promotional activity led to lower sales and margins. | Simon Calver, Mothercare's chief executive, said: "In the UK, our stores suffered similar Christmas trading pressures to those reported elsewhere. Customer service scores continue to improve year on year but weaker footfall and higher promotional activity led to lower sales and margins. |
| "International was impacted by currency deflation reducing the reported rate of growth and by heightened economic volatility. As a result of lower UK sales and margin and the international currency impact, full-year profits are likely to be below the current range of market expectations." | "International was impacted by currency deflation reducing the reported rate of growth and by heightened economic volatility. As a result of lower UK sales and margin and the international currency impact, full-year profits are likely to be below the current range of market expectations." |
| Calver has been trying to revive Mothercare by closing unprofitable stores, revamping remaining branches, improving customer service and increasing international sales. But the chain has fallen victim to weak household spending, which has hit retail sales despite signs of economic recovery and improved consumer confidence. | |
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