RETAILER Mothercare issued a profit warning after the big freeze stopped shoppers from reaching its out-of-town stores.
The chain, which includes a store at Great Northern Retail Park in Huddersfield and 377 outlets UK-wide, said sales of toys were particularly affected as December’s Arctic blast wiped an estimated 4% off its UK sales figure for the final quarter of 2010.
UK like-for-like sales excluding VAT were down by 5.8% in the 12 weeks to January 1 – leading the retailer to warn that profits for the year to April were likely to be less than the City’s expectations of £41m.
Mothercare said UK sales in the final quarter of 2010 had got off to a strong start but were “impacted significantly’’ by the snow in December.
The news led its shares to slump by 5% or 33p to 565p yesterday.
Finance director Neil Harrington said UK like-for-like sales were down by 21% in one week in December which was particularly badly hit by snow.
Mr Harrington said: “The snow was a pain in the neck. Our customers have young babies and pushchairs or are pregnant and don’t come out in the snow.
“The snow came right at the peak time for ordering toys for Christmas.”
The Arctic weather also forced the retailer to bring forward the cut-off point for Christmas deliveries to ensure customers received their presents on time.
Mothercare said its UK gross profit margin would be 1% lower than previously expected as it put on post-Christmas sales to clear excess stock.
Pre-tax profits for the year would be down by between 10% and 15% in the year to April as a result, it said.
Mothercare’s international division increased sales by 17.6%, helping lift a total group revenues by 0.4%.
Mothercare’s overseas sales outgrew those of the UK for the first time earlier this year.
It has opened 157 overseas stores so far this year, taking the total to 885, including its first stores in Syria and Georgia.
