Saturday, 21 April, 2018

Mothercare warns over profits following dire Christmas

Mothercare Mothercare warns on profits after Christmas sales drop
Preston Stone | 10 January, 2018, 11:43

Mothercare shares slumped in early trading by around 30% to 45p. Online sales, which now represent around 42% of total sales, fell 6.9%.

Mothercare said it had reduced its total United Kingdom retail space to 1.4m sq ft in its store closure programme and that total sales were lower as a result.

"Admirable, perhaps, but with competitors slashing prices ahead of Christmas amid (justified) fears of a slowdown in consumer spending, it looks as if the "conscious decision" to remain at full price prior to Christmas but to then discount more heavily in the end of season sale was a mistake", he said.

CEO Mark Newton-Jones has warned the retailer now expects adjusted group profit for the year to be in the range of GBP1-5m (US$1.35-$6.77m), having previously predicted profits of GBP10m. Competitive pricing by rivals such as AB Foods' (ABF.L) Primark unit and online retailers including Amazon (AMZN.O) also eroded its margins.

The firm added, however, that key markets were showing signs of improvement towards the end of the period. "While the majority of its stores are now in the new club format, improving the store experience further is essential to return like-for-like sales to growth, with at least a 2% rise necessary for Q4 to avoid a 2017/18 full-year decline".

Mark Newton-Jones, Mothercare chief executive, added: "As we signalled in November, there has been a softening in the United Kingdom market with lower footfall and website traffic resulting in lower spend in both stores and online".

Israel to Approve Hundreds of New Settler Homes in West Bank
It annexed East Jerusalem , saying the entire city is its indivisible capital, in a move that was not internationally recognized. An Israeli man was shot dead in the West Bank on Tuesday, close to an illegal settlement near Nablus, the army said.

Forecasts for the year to 30 March 2019 have been chopped to £7.5mln from £13mln. The year prior, Mothercare reported pretax profit of GBP7.1 million and adjusted pretax profit of GBP19.7 million on revenue of GBP667.4 million.

Its model now points to a United Kingdom loss of £17.9mln for the year, with the group as a whole weighing in with profit before tax of £0.5mln, versus previous expectations of £11.3mln. Newton-Jones argued it still had "sufficient liquidity and covenant headroom" within its existing facilities.

Mr Newton-Jones continued that "whilst the performance of the business has been challenging in the last few months, we remain singularly focused on transforming Mothercare to be the leading global retailer for parents and young children".

Mothercare's woes echoed that of another retail peer reporting last week.

Online sales in the United Kingdom fell 6.9 percent during the 12 weeks to December 30, including the key Christmas season.

Since taking the helm three years ago, Newton-Jones has closed 100 loss-making United Kingdom outlets and modernised 70 per cent of the remaining stores. It was due to lower footfall and spend, both in stores and online, following the continuation of consumer trends flagged in half year results.

Recommended

  • Mourinho is a

    Mourinho is a "little man", says Chelsea's Conte

    However, Mourinho did not hold back in responses and referred to Conte's match-fixing scandal in 2011. City are running away with the Premier League and remain on course for an unprecedented quadruple.
    City had lowest recorded number of pedestrian deaths in 2017: Mayor

    City had lowest recorded number of pedestrian deaths in 2017: Mayor

    In 2017, there were 101 pedestrian fatalities, with another 113 traffic fatalities in other categories, according to city data . De Blasio previously said he's not running for president and will serve all four years of his second and final term in office.
    Djokovic returns from injury layoff with dominating win

    Djokovic returns from injury layoff with dominating win

    He then turned and beamed. "I'm free of fever and healthy again", Thiem said post-match. Djokovic added: "I had that kind of matchplay attitude".
  • Supreme Court gives death row inmate new appeal after juror's racist beliefs

    Supreme Court gives death row inmate new appeal after juror's racist beliefs

    About a month later, Tharpe's wife was driving to work with her brother's wife when Tharpe used a truck to block them. Court of Appeals for the) Eleventh Circuit erred when it concluded otherwise".
    Dell's new XPS 15 2-in-1 has a 'maglev' keyboard

    Dell's new XPS 15 2-in-1 has a 'maglev' keyboard

    The Radeon RX Vega M GPU built-in has its own 4GB HBM2 memory aside from the 8GB or 16GB DDR4 2400MHz system memory pool. Yes, it's that time of year again-Dell's annual jamming a thumb into the eye of Apple's vaunted MacBook Pro 15.
    Iran Bans English in Primary Schools

    Iran Bans English in Primary Schools

    The protests, which have voiced concert over Iran's standard of living, have resulted in at least 21 deaths have 1,000 arrests. In the Iranian education system learning a foreign language, as well as Arabic, is compulsory in high school.
  • Mercedes-Benz Malaysia says sustaining sales growth a big challenge in 2018

    Mercedes-Benz Malaysia says sustaining sales growth a big challenge in 2018

    US sales were down 0.9% year over year to around 340,000 units, even though SUV sales were higher this year. For 2017, MBM's sales was driven by the locally-produced limousines which recorded 7,041 units sold.

    Are SL Green Realty Corp. (SLG) EPS Estimates Revised?

    About 1.04M shares traded or 9.23% up from the average. (NYSE: SLG ) has risen 3.99% since January 9, 2017 and is uptrending. The Volatility 3m of SL Green Realty Corp. (NYSE:CFR) shares with value of $664,930 were sold by Wolfshohl Candace K .
    Koreas to meet for talks, but North won't budge on nukes

    Koreas to meet for talks, but North won't budge on nukes

    The President wanted Kim Jong Un to know that the United States has "bigger & more powerful" nuclear buttons than North Korea. North Korea initiated contact with South Korea through a crisis hotline between Seoul and Pyongyang.
  • Fire breaks out on Trump Tower roof

    Fire breaks out on Trump Tower roof

    A CNN reporter said in a tweet that the fire has been contained and noted that traffic is blocked in the area. Eric Trump , the son of the president, said the blaze was a "small electrical fire".
    Guardiola credits Bristol City:

    Guardiola credits Bristol City: "They came here to play"

    Bristol manager Lee Johnson saw it similarly to the above quotes from Guradiola. Taylor also set up Korey Smith's victor against Manchester United .
    Taiwan passport ranked 32nd 'most useful' in the world

    Taiwan passport ranked 32nd 'most useful' in the world

    The countries with the least visa-free access to other countries are Afghanistan, Iraq, and Syria. Out of 218 countries and areas, Taiwan citizens may enter visa-free into 134 of them.

The Trump Administration Continues To Rail Against Michael Wolff's Book The Trump Administration Continues To Rail Against Michael Wolff's Book CNN is a familiar target for Trump and Miller, with each having publicly sparred with the network's star chief White House correspondent Jim Acosta.

World Bank predicts "enormous growth" for India, 7.3% in 2018-19 World Bank predicts Protracted political and policy uncertainty could further hurt confidence and deter investment in some countries. But for 2019 and 2020, those economies are seen slowing to 1.9 per cent and 1.7 per cent, the report said.

Trump Signs Veterans' Mental Health Legislation Trump Signs Veterans' Mental Health Legislation Shulkin called the number "unacceptable" and said preventing suicides was his agency's "single top priority". The government has long grappled with how to reduce the suicide rate among veterans.

SAD!!! Newborn baby found dead on plane SAD!!! Newborn baby found dead on plane In a similar incident previous year September, the body of a new-born baby was found in a waste bin in Bellville, Cape Town. The officers were informed by the public about a suspicious bundle wrapped in a black sweater and thrown in the waste bin.

O'Neill Favourite To Take Over At Stoke O'Neill Favourite To Take Over At Stoke Meanwhile, Derby manager Rowett says getting them promoted to the Premier League would be the biggest achievement of his career. The 43-year-old's stock has risen in his stewardship of two Championship sides, firstly with Birmingham City and then Derby .

Metal Gear Survive Single Player Gameplay Released Metal Gear Survive Single Player Gameplay Released Along with beta dates and other details, Konami also released a new trailer for the game, which can be seen in the video above. As mentioned earlier, " Metal Gear Survive " is the first game after Kojima's departure to make his own developer company.

FA adopts version of 'Rooney Rule' FA adopts version of 'Rooney Rule' The diversity problem was laid bare by recent analysis from the FA which found there are now just five BAME coaches across the 92 football league clubs.

'Kitty Pryde' Movie Being Developed By 'Deadpool' Director Tim Miller 'Kitty Pryde' Movie Being Developed By 'Deadpool' Director Tim Miller Kitty Pryde has had many iterations over the years and can pass through objects, disrupt electromagnetic fields, and levitate. One of my favorite versions of Kitty Pryde appeared in an X-Men animated series pilot that never went to series.

Japanese Kayaker Spikes Another Athlete's Drink So He'd Test Positive for Steroids Japanese Kayaker Spikes Another Athlete's Drink So He'd Test Positive for Steroids The Japan Canoe Federation first launched an investigation after Komatsu tested positive but denied ever taking steroids . Komatsu was provisionally disqualified from competing in October, but the punishment has now been nullified.

Milan not interested in Walcott move Milan not interested in Walcott move AC Milan have reportedly turned down the opportunity to sign Theo Walcott after Arsenal offered the English winger to the Italian giants.

Coachella 2018 Still No-Go on Weed Even Though Cali Says Yes Coachella 2018 Still No-Go on Weed Even Though Cali Says Yes And Coachella's venue is on private property - the festival is held at the Empire Polo Club in Indio. Under the new law, each city decides whether to allow recreational weed sales. and Indio does not.

JBL's New Everest Headphones are Optimized for the Google Assistant JBL's New Everest Headphones are Optimized for the Google Assistant The Clip 3 has echo and noise-canceling, meaning this speaker can be used to make decent calls while paired to a phone. It is available in Gunmetal Silver, Mountain Silver, and Steel Blue, and the batteries should last about eight hours.

Messi marks new milestone in Barcelona victory Messi marks new milestone in Barcelona victory Midfielder Andres Iniesta also welcomed Coutinho the to the club on Instagram with the message: "Welcome Philippe Coutinho! ". The brilliant Brazilian FINALLY swapped Anfield for the Camp Nou, after the clubs agreed a whopping £142 million transfer.

Buhari orders IG Idris to move to Benue Buhari orders IG Idris to move to Benue Ortom insisted the identities and locations of the attacker are well known, saying they should be prosecuted. I have spoken to him that those are the people I know and I have documentary evidence against them.

India woman kills self over relationship with Muslim man India woman kills self over relationship with Muslim man As well as arresting Anil, the police have also launched a huge operation to arrest the main accused Santhosh and three others. Anil, president of Mudigere town unit of BJP's Yuva Morcha on this issue, based on the suicide note.