Mothercare have today added to the New Year retailing woes after it announced its annual profits are set to fall short of market expectations.
The retailer Joined HMV, Clinton Cards, and Next when it announced its stock had dropped as a result of the December snow. The company today reported a 5% slump, highlighting a drop of 30.5p to 567.5p.
Major retailers across the UK have been put in crisis in the aftermath of the big freeze hitting decimating festive sales.
Mothercare today issued a warning to their shareholders to expect their profits to be well below expectations this year, as a result of the cold snap.
The mother and baby products retailer said shoppers were prevented from visiting their stores as a result of frozen roads which had a direct effect on Toy sales. The retailers estimate that 4% of its UK sales figure for the final year was wiped out as a result of December’s Arctic blast.
The company, which has 377 stores across the UK, said like-for-like sales not including vat were down 5.8% in the 12 weeks up until the New Year, leading to the retailer warning that their profits through to April would fall short of the City’s expected £41million.
The retailers who claim their out of town stores were hit the hardest, issued its trading schedule a week early which prompted a 5% slide in its shares this morning.
Mothercare were forced to stop taking their pre-Christmas orders much earlier than usual, as the snow caused a backlog that the company were struggling to clear.