Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mothercare Gains Most in Three Years on Chief’s Departure

Don't Miss Out —
Follow us on:

Oct. 11 (Bloomberg) -- Mothercare Plc, the children’s clothing retailer that said last week trading was “well below” forecasts, rose the most in three years in London trading after saying Chief Executive Officer Ben Gordon will step down.

Mothercare climbed 9.2 percent, the most since October 2008, to close at 210.2 pence. This gives the Watford, England-based company a market value of 186.3 million pounds ($291 million).

Gordon, who joined the company in December 2002, will step down on Nov. 17 by “mutual consent”, Mothercare said in a Regulatory News Service statement today. The management team will report to Chairman Alan Parker while the board seeks a replacement.

Mothercare, owner of 1,322 stores worldwide, plunged 42 percent after saying last week the second-half outlook had worsened and trading deteriorated in the preceding four weeks. U.K. revenue fell 6.4 percent in the 12 weeks ended Oct. 1, with sales in U.K. stores open at least a year declining 9.6 percent. Sales through the company’s website fell 6.9 percent.

“The market view is that while Ben was exceptionally good on the international front, the U.K. businesses have suffered in the last couple of years,” James Dilks-Hopper, a London-based analyst at Numis Securities, said in a telephone interview, “So investors are looking at the fact that a new CEO coming in is likely to put more emphasis on the U.K., and look to improve that. It’s the freshness of eyes that the investors are looking positively on.”

To contact the reporter on this story: Namitha Jagadeesh at njagadeesh@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.