Flooring specialist Carpetright has today become the latest retailer to issue a profits warning, as trading conditions in the UK and Ireland become increasingly difficult.
Underlying pre-tax profits for the 12 months to April 30th 2011 are now expected to be “broadly in line” with those of the full 2009 financial year, while they are set to be below those achieved in 2010.
In a February trading update investors were made aware that Carpetright was set to report a reduction in year-on-year profits, but at the time the retailer was confident profits would be higher than two years ago.
Today’s trading update said: “Since the date of that statement, difficult trading conditions have persisted in the UK and Republic of Ireland, with fragile consumer confidence producing a weak floor coverings market.”
Since the start of 2011 a number of retailers have issued profit warnings, with PC World and Currys owner Dixons Retail and card and gift specialist Clinton Cards among the companies likely to miss financial targets this year.
Entertainment retailer HMV Group, which is considering offers for its bookselling arm Waterstone’s in an attempt to raise funds and streamline its business, has issued two profit warnings in the last two months alone as low consumer confidence and competition from supermarkets and internet retailers continues to have a negative impact on British high street sales.