Tuesday, 12 December 2017

Floor coverings specialist Carpetright shares hit as profit forecast cut

Floor coverings specialist Carpetright has said it expects full-year profits to be at the "bottom end" of expectations amid a "volatile and unpredictable" consumer market.

Its comments came as it said profits for the six months to 28 October sank to £0.3m from £4.1m last year.

The chain blamed the lack of consumer confidence, increased competition and discounting for the fall.

Shares in Carpetright dropped by 7.5% on news of the weaker profit outlook.

A softening of the housing market in some areas, pressures on consumer spending from inflation and subdued wage growth have all fed into a weaker performance.
Carpetright chief executive Wilf Walsh said: "The first half has undoubtedly been challenging.

 Consumer confidence remains fragile and we continue to manage the impact of intensified competition."

Despite the fall in half-year profits, like-for-like sales - which strip out the impact of store openings and closures - rose 0.7% in the UK and 6.5% in the rest of Europe.

Mr Walsh added: "We have made pleasing progress in our core flooring business in the UK - like-for-like sales are up, more than half the UK store estate has now been refurbished and our customer service metrics have been improved significantly.

BBC     News.