The topsy-turvy logic of Destination Maternity’s interest in merging with Mothercare was laid bare by the US retailer’s latest update.

The topsy-turvy logic of Destination Maternity’s interest in merging with Mothercare was laid bare by the US retailer’s latest update.

Destination Maternity posted a 5.5% decline in third-quarter net sales, bringing the nine-month total fall to 4.2%.

The retailer warned that profits for the year would fail to meet previous guidance and its shares plunged 8% on the day of the disclosure.

While Destination Maternity partly blamed a tough retail environment, it detailed a variety of reasons for its poor performance.

They ranged from a poor shopper reaction to parts of its range, increased competition and the fact that fashion styles popular at present which suit pregnant women – such as maxi dresses and “oversized peasant-style woven tops” – can be bought at all sorts of apparel stores so mums-to-be need not only visit its shops.

Destination Maternity’s woes don’t make it look like a suitable partner for Mothercare, which is facing its own problems.

Instead it seems the US retailer needs to apply the retail equivalent of some parental discipline or TLC to its own business.

Meanwhile the potential interest in Mothercare, along with turnaround hopes, has helped its share price double since late May.

Destination Maternity’s difficulties must make it less likely that it can proceed with any attempt to tie-up with Mothercare, which itself has a long way to go to restore its fortunes.

It must do so in a UK maternity retail market that, like the US, might become even more competitive following private equity firm Endless’s acquisition of Kiddicare from Morrisons this week.

Mothercare last week appointed former Shop Direct boss Mark Newton-Jones as chief executive after he’d held the role on an interim basis. Now it’s up to him to make Mothercare a contender once again in retail’s beautiful baby contest.

His chances of doing that, rather than the prospect of US bid interest, should dictate investor attitudes to the shares.