Mothercare's shares are down and profits are expected to fall ahead of this week's interim results

 
Courtney Goldsmith
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Mothercare: Baby K - Photocall
The retailer is expected to report a drop in profits this week. (Source: Getty)

Mothercare is expected to report a drop in pre-tax profits in its interim results this week as shares fail to recover from overseas trading fears.

Mothercare's shares closed at 109.7 on Friday, halving from the beginning of the year.

Read more: Mothercare takes baby steps with first profit in five years

Despite a rise of 1.2 per cent in like-for-like sales at the company's last trading update, the retailer's total UK sales were down 2.1 per cent. Across its Mothercare and Early Learning Centre brands, the company has 170 stores.​

International sales were up in the July trading report after falling at the beginning of the year. Mothercare Chief Executive Mark Newton-Jones cited the timing of Ramadan for the boost, which was entirely during the first quarter this year.

Read more: Mothercare more than doubles profits as turnaround pays off

"We remain cautious and expect to see continued volatility during the first half of the year in our International business," Newton-Jones said.

Newton-Jones also reported the company had seen no immediate reaction to the vote to leave the European Union, but said it was still too early to call.

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