Mothercare warns over profits following dire Christmas
Mothercare has warned over profits after UK sales plunged in the run-up to Christmas, with consumer spending falling in both stores and online.
The baby retailer said UK like-for-like sales plummeted 7.2% in the 12 weeks to December 30, while online sales tumbled 6.9%.
As a result, Mothercare now expects adjusted group profit for the year is likely to be in the range of £1 million to £5 million.
Chief executive Mark Newton-Jones said: "As we signalled in November, there has been a softening in the UK market with lower footfall and website traffic resulting in lower spend in both stores and online. This trend has continued.
"Going forward, we are not anticipating any improvement in the short-term market conditions for the UK."
Retailers have been hammered by weak consumer confidence off the back of soaring inflation, which has hit 3.1% following the collapse in the pound after the Brexit vote.