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Carpetright expects profits to drop

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Floor coverings specialist Carpetright has predicted its full-year profits for the current financial year will be down on 2010 and below market expectations.

Difficult trading conditions in the 13 weeks to January 29th have prompted the warning, which was made in its third-quarter trading statement this morning.

Group sales were down 6.4 per cent year-on-year during Q3, with UK and Republic of Ireland like-for-likes dropping 7.7 per cent.

The same period saw total sales in Carpetright’s other European network fall 11.2 per cent in sterling.

Although profits are now expected to be down on 2010, the retailer is confident they will be ahead of those achieved in 2009.

Lord Harris of Peckham, Chairman and CEO of Carpetright, said: “The tough trading conditions in the UK and Republic of Ireland have continued into the third quarter of our financial year, with adverse weather conditions and fragile consumer confidence producing a difficult floor coverings market.

“As we stated at our last update, we were expecting January trading to be boosted by the impact of snow in the comparative period.

“Although we have achieved an increase in sales year-on-year since Christmas, this has not been at the level expected. This causes us to remain cautious about the outlook for the remainder of the financial year.”

The Carpetright boss said last month that the company is well positioned to benefit when consumer demand returns in the sector, and he indicated today that he continues to remain confident in the business’s future.

Published on Tuesday 01 February by Editorial Assistant

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