Shares in British retailer Mothercare dropped are tanking on Thursday after it announced a hugely disappointing set of quarterly results.
Mothercare’s stock crashed by as much as 19% at the open, falling to £1.52 per share from £1.88. Since then, shares have recovered a a little, but are still down more than 15% as of 9:15 a.m. BST (4:15 a.m ET), as investors react to the results. Here’s how that looks:
The company, which makes products for young children, said that like-for-like sales were up 2.1% in the same period, but international sales were down 9.7% with currency further impacting retail sales in actual currency which were down 10.8% in the 11 weeks to March 26th.
Mothercare said the drop in oil prices affected consumer confidence in the Middle East, resulting in a significant decline in constant currency sales.
It added that China in particular was also affected by weakening consumer confidence, while Europe and South America were impacted by adverse currency moves.
Mark Newton-Jones, CEO of Mothercare, said he expected the overseas markets to stay tough for the time being:
“International continues to be adversely affected by the sustained economic and currency headwinds. Whilst all four regions are softer, the Middle East and China in particular have been impacted by weaker consumer confidence.
“In the year ahead, we expect to make further progress in the UK. However, our international markets are likely to remain challenging with the current trends in space, sales and currency continuing into the new financial year.”
NOW WATCH: Broadway’s biggest hit ‘Hamilton’ is making over $2 million a month — here’s why the producer thinks it could be making a lot more
Business Insider Emails & Alerts
Site highlights each day to your inbox.