Mothercare's trading update this week offered little cheer and, despite a 65 per cent slump since our sell advice, few reasons to own the shares.
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The babywear retailer revealed a 6.2 per cent slide in UK like-for-like sales in the year to end-March, while the final quarter's UK sale slumped 8.2 per cent on that basis.
That trading pain, however, came as no great surprise. Of more interest was management's strategic update, which envisages closing a further 111 stores (more than a third of the estate) over the next three years in order to focus on a core of 200 profitable stores. Some £20m of non-store related cost savings have been identified, too.
