Mothercare shares tumble on profit warning Shares in baby accessories retailer Mothercare fell heavily this morning after it warned full-year profits would fall short of City expectations after it suffered weak sales in the run-up to Christmas, despite steep price cuts. The chain said like-for-like sales in the UK fell 4 per cent during the 12 weeks to 4 January, while total group sales dropped 6.1 per cent. Chief executive Simon Calver said weaker footfall and heavy promotional activity led to lower sales and margins in the UK, while overseas trading had been hit by currency effects and "unseasonal" weather in Russia and the Middle East. He added: "As a result of lower UK sales and margin and the international currency impact, full-year profits are likely to be below the current range of market expectations. We continue to focus on delivering a turnaround in the UK and exploiting the global growth opportunities for Mothercare. Following the trading update, Mothercare's shares plunged 130p, or 31 per cent, to 290p. Mike Dennis, retail analyst at Cantor Fitzgerald, said: "The UK baby clothing and equipment market remains very competitive with few retailers in this category making any positive retail margins, especially as high street clothing chains, internet offers and supermarkets continue to grow space and share."