Mothercare warns on profit
Mothercare has warned that its year-end profit will be at the lower end of its previously guided range of £1 million to £5 million as it battles against a “more challenging” trading environment.
The company also said it is in talks regarding its financing needs for the coming months and is exploring additional sources of funds as it looks to maintain the momentum of its transformation programme.
Mark Newton-Jones, Mothercare chief executive, said: “The retail sector continues to face a number of pressures that are clearly having a profound impact on the sector as a whole. Against this backdrop we are performing in line with our expectations and remain a cash generative business, but we also need to push ahead with our transformation strategy to meet our customers’ needs and continue adapting to evolving shopping habits around the world.”
Mothercare has been taking action to reduce its costs and is also continuing with its planned strategy of reducing its UK store estate whilst increasing its digital capabilities. The company said over 40% of its sales are now being taken through digital channels.
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