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Carpetright issues second profit warning

Published: 7 April 2011
Retailer reports tough trading conditions and a 'weak floorcoverings market' in the UK and ROI, resulting in a second profit warning for the year.
Carpetright issues second profit warning
In an interim management statement issued on February 1, Carpetright said it did not expect underlying pre-tax profit for the year ended April 30, 2011 to reach the 2010 figure of £28.2m. At the time, the firm still predicted profits to be ahead of 2009's £16.7m profit performance.

However, the carpet and floorcoverings retailer today issued a second profit warning, explaining that underlying pre-tax profit is now expected to be "broadly in line" with the level achieved in 2009, rather ahead of it.

Carpetright commented: "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 floorcoverings market."

Carpetright reported a 5% sales decline in the UK and Republic of Ireland for the 13 weeks ended January 29, 2011 - down 7.7% on a like-for-like basis. Meanwhile group sales slid 6.4% for the period.

During the three-month period, the retailer closed 10 of its outlets in the UK and ROI. Last month Carpetright also announced plans to close seven of its 25 stores in Ireland after sales in the country halved over the past three years. Operations in the rest of Europe remained constant, with two new openings in the Netherlands in the three months to January 29.

The group will report its usual year end pre-close trading update on Wednesday April 27, 2011 ahead of its year end on April 30.

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