Mothercare stocks up as CEO steps down

<p>Simon Calver has resigned from the mother-and-baby products retailer.</p>

The share price of struggling retailer Mothercare has risen this morning (February 24th) after the chief executive of the company confirmed he is to step down from the role.

Simon Calver announced he has resigned from the position with immediate effect and will be leaving the company completely at the end of next month.

Stocks in Mothercare collapsed in January on the back of a profit warning issued by the firm due to a drop in its revenues when it released its latest financial results. Group worldwide sales were revealed to have fallen by more than six per cent in the 12 weeks to January 4th and UK like-for-like sales were also down by four per cent.

Mothercare chairman Alan Parker stated that the company has made progress in implementing its Transformation and Growth plan since Mr Calver took over as chief executive almost two years ago.

He said: "In particular, Simon Calver's ecommerce expertise has allowed Mothercare to accelerate its development as a multi-channel retailer in the UK. We wish him well in the future. Mothercare has a strong executive management team which is very capable of running the business in the interim while the search for a new CEO is under way."

Shop closures

Mothercare currently runs 40 Early Learning Centre outlets in the UK, as well as 191 Mothercare stores, but the company is planning to scale back these figures in the coming months as part of a bid to improve its financial position.

Following the news of Mr Calver's resignation from his role as chief executive of Mothercare, stocks in the mother-and-baby products retailer were up by 0.4 per cent at 08:36 GMT. Shares were trading at 248.50, up from the 52-week low of 240.25 previously hit by the firm. However, by 10:29 GMT the gain was down to 0.3 per cent.

The appointment of a new chief executive will be seen as a chance to turn around the failing fortunes of the retail company, which has been a dominant presence on the UK high street for a number of decades.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.