Retailers buy over £250,000 in own shares after dismal Christmas trading

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Retailers have spent hundreds of thousands of pounds buying up their own shares after dismal Christmas trading updates sent share prices tumbling.

Debenhams, Card Factory and Mothercare have spent a collective £274,713 on their own stock in the wake of the release of anaemic financial figures, according to The Telegraph.

Mothercare issued a profit warning after its total sales for its third quarter, including the Christmas trading period, dropped 11 per cent.

It also shrunk its profit forecasts sharply, dropping from £10 million to between £1 million and £5 million.

Following the profit warning, share prices plummeted, leading chief executive Mark Newton-Jones to buy up 218,387 shared for £99,802 while its finance chief Glyn Hughes purchased a further £24,795 worth of shares.

Debenhams issued a profit warning after it endured a sales decline of 2.9 per cent during the 17 weeks to December 30.

This saw share prices drop nearly 20 per cent, wiping roughly £70 million off its value.

Chief executive Sergio Bucher and chairman Ian Cheshire took advantage of the near-historic low prices, buying up £49,956 and £51,415 worth of shares respectively.

A similar 20 per cent drop in share prices at Card Factory saw chief executive Karen Hubbard purchase 20,387 for £48,745, following a profit warning due to an estimated extra £8 million in costs thanks to the weak pound.

The news comes amid reports that footfall decreased sharply throughout December, adding further strain on high street retailers already dealing with higher costs and taxes, alongside rising wages and falling consumer spending power.

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