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Mothercare shares plunge by 30% after Christmas

Shares in Mothercare fell by 30% today after the chain fell victim to fierce Christmas price wars.

Shares in Mothercare slumped today. Credit: PA

Shares in the babycare products chain sank 126p to 294p after confidence in its turnaround plan was hit by today's profits warning.

Mothercare blamed a 9.9% plunge in UK sales on the "highly promotional" nature of the Christmas period and lower footfall.

Mothercare sales hit by rivals' cut price deals

Mothercare has seen UK sales fall as it lost out to rivals' cut-price deals.

The baby products retailer saw sales fall by 0.9 per cent in its first quarter to July 13 citing an "increasingly promotional" market as a key reason for the reduced demand for toys, home and travel products.

Mothercare has seen UK sales fall as it lost out to rivals' cut-price deals. Credit: Paul Faith/PA Archive/

Despite the figures, chief executive Simon Calver said he was "encouraged by the improving positive feedback from our customers to the necessary changes in the UK, particularly to product innovation and new clothing ranges".

The group, which operates 1,116 franchise stores across 60 countries, saw more success in its international business with an 11.3 per cent growth in sales.

Mothercare sales hit by poor UK performance

Mothercare has posted a 5.9 percent drop in like-for-like UK sales over the Christmas period.

The mother and baby retailer, which has over 1,300 stores worldwide including 269 in the UK, said its total UK sales also fell 12.9 percent, hitting the group's overall performance.

Mothercare's like-for-like sales in the UK were down 5.9 percent over Christmas. Credit: Martin Rickett/PA Wire

Chief Executive Simon Calver said in a statement, "We have made solid progress during Q3 [the third quarter], despite a challenging consumer backdrop for the UK and Eurozone".

"Our three-year transformation and growth plan remains on track," he added.

In the 13 weeks to 12th January, Mothercare's total group sales fell 7.4 percent.

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