Thursday, February 25, 2021

Pre-tax profits at Carpetright plummet 33.3%

Flooring chain Carpetright has reported an expected 33.3 per cent drop in underlying pre-tax profits as UK sales declined 2.2 per cent for the 26 weeks to 26 October.

Like-for like sales dipped 0.8 per cent and group revenue fell 2.2 per cent to £222.2m.

The retailer posted an 8.4 per cent decline in its international business, with its Netherlands stores continuing to struggle with consumer confidence low in the area.

Carpetright, which has 474 stores in the UK, posted a profit warning earlier this year as Lord Harris came out of retirement to take over as Executive Chairman following Chief Executive Darren Shapland‘s decision to leave the business.

The retailer has taken action to halt the slide with 38 stores being modernised this period, with improved lighting and more effective signage some of the changes being made.

Its bed section has been re-launched and now makes up 7.1 per cent of total UK sales revenue.

Greg Bromley, retail consultant at Conlumino, commented: “Despite the recent reported improvements in the UK economy, Carpetright is still yet to really see the benefits.”

“Looking forward, Carpetright has begun to see some effect of increased mortgage approvals in sales of floor covering, although Lord Harris says this usually takes some six months to really filter through to any increase in sales.”


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