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Carpetright shares slide amid volatile trading

Carpetright new frontage

Sales at Carpetright, the UK's largest specialist carpet and flooring chain increased 0.8% in the 25 weeks to 21st October 2017, amid what management described as 'volatile' markets in the UK and Europe, resulting in an expected decline in profits.

During the period, their flooring category increased 2.1%, however, overall growth was limited by a “re-ranging activity” in its beds and mattress business in efforts to improve its product range. 

During the last six months, 21 stores have been refurbished and converted into their new format, which now accounts for more than half the UK estate. They also saw a net store reduction of seven, having shut nine and opened two units and it now operates from 419 UK branches.

Outside the UK, the rest of Europe performed better, with like for like sales increasing 6.3% in local currency terms.

“While trading conditions in the UK remained volatile over the first half, the 2.1% increase in like-for-like sales in our core flooring category is pleasing given the increased level of competition,” chief executive Wilf Walsh said. "Sales in our rest of Europe business have been equally volatile, but we have been encouraged by more recent like-for-like sales growth, in part reflecting the strong post-refurbishment performance of the 25 rebranded stores we have now completed.

“Whilst we expect the group first half profit to be below that of the prior year, we are pleased with the improvement in sales in the Rest of Europe and beds in the UK over the past few weeks. When these are combined with continued progress in our core flooring category we expect a significantly stronger second half with full year profit within the current range of market expectations.”

Carpetright shares were down over 6% at the time of publishing this article.

Source: Insight Team

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24 October 2017

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