Carpetright on verge of bouncing back as CVA begins to bear fruit

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Carpetright CVA
(Image credit: Jason Alden/Carpetright/PA Wire)
// Carpetright says Q4 was a huge improvement as CVA restructure begins to bear fruit
// UK like-for-like sales “improved significantly” in the latest 3-month period
// Overall performance for the 12 weeks to April 20 was also in line with expectations

Carpetright has said its UK like-for-likes had “improved significantly” in its final quarter, as a CVA that resulted in a major restructure and store closures begins to bear fruit.

The retailer said its overall trading performance in the 12 weeks to April 20 was in line with expectations, where UK “like-for-like sales trend improved significantly” compared with the financial year to date, as “customer confidence in the business started to return”.

Carpetright added that it was expected to hit its annualised £19 million cash savings, but warned consumer confidence in the UK remained “challenged”.

The news comes after a torrid 12 months for the retailer, whereby it was forced to launch a CVA that entailed 81 store closures, rent reductions and business restructure in order to stay afloat.

“This has been a transitional year for Carpetright and we remain on track both with our recovery plan and our strategic initiatives,” chief executive Wilf Walsh said.

“The actions taken are driving improvement, particularly in the invested store estate, and the brand remains strong.

“Whilst consumer confidence remains challenged in the UK, the work we have done to reposition the business is starting to deliver the benefits necessary to put Carpetright back on the path to sustainable profitability.”

Carpetright said that trading in the rest of Europe was ahead of the same period last year, driven by a strong performance in The Netherlands.

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