Mothercare reveals more UK woes
Retailer Mothercare today said UK sales remained in the red and revealed profit margins were taking a bigger-than-expected hit as it struggles amid stiff competition.
The babycare chain said UK profit margins for the past year were down 2.5% against the 2% fall previously expected.
UK like-for-like sales were down 2.4% in its final quarter to March 26, with sales for the year as a whole down 4%.
Shares fell 10% after today’s update, which marks the latest in a flurry of gloomy reports from British retailers.
Mothercare, which has 377 UK stores, warned UK profits would continue to come under significant pressure as weak consumer demand continued.
But it said its international sales were up 12% in the final quarter, led by a 47% growth in India, China and Australia over the past year.
