Mothercare cuts profit forecast on UK woes

British baby goods retailer Mothercare has warned that its full-year profit would be much lower than earlier expectations as it did not see any improvement in the UK market in the short-term.

Mothercare said adjusted group profit for the year ending March is likely to be in the range of £1 million to £5 million, sharply lower than the £10 million it expected earlier. The company earned £19.7 million pounds in the previous year.

Mothercare, which has been trying to revive its British business that has come under pressure from tough competition, said UK like-for-like sales fell 7.2 per cent in the 12 weeks to December 30th. Online sales in the UK fell 6.9 per cent during the 12 weeks to December 30th, including the key Christmas season.

Reuters