Mothercare shares tumble today
Mother-and-baby group Mothercare saw shares tumble today after reporting a slide in Christmas sales.
Mothercare said that despite improved margins, the lower-than-forecast sales meant its trading outcome for this year – to the end of March – would be worse than expectations.
The group added that chief executive Ben Gordon, who joined a month ago, was undertaking a “detailed operation review” which included options for distribution.
The disappointing trading marks another troubled Christmas for the group.
Last year, teething problems at Mothercare’s warehouse in Daventry meant stores ran out of products over the crucial festive period, and in November 2002 the group reported half-year pre-tax losses of £10m (€15.1m).
Prior to today’s update, analysts were forecasting pre-tax losses for the year to the end of March of around £6m (€9.07m).
Shares slumped 15% to 85p in early trading.
