Mothercare, which last week posted a 4.3% drop in UK like-for-likes in its first quarter, is a sell according to broker FinnCap.

The broker cut its target price from 350p to 310p following the update covering the period to July 9. The retailer’s share price was down 3.44% at close on Tuesday.

The maternity retailer, which is in the process of closing 110 of its UK stores, said measures taken to adapt to tough conditions here will bear fruit and restructuring is progressing well.

Mothercare has been testing a new format, which it said had been  “received well” by customers, and plans to kickstart a roll-out of the store model next year.

The international division had a strong quarter. Sales increased 15.2% in the period. Broker Numis said: “The international business is making progress and we reiterate our positive stance on the stock.”