Overcast

Overcast

max temp: 9°C

min temp: 9°C

Search

Retail: Carpetright issues its third profits warning in six months

10:26 26 March 2014

Carpetright has issued its third profits warning in six months.

Carpetright has issued its third profits warning in six months.

Carpetright warned over profits for the third time in six months today after admitting it has yet to benefit from the UK’s housing market recovery.

The floor coverings retailer said signs of improvement reported earlier this year had tailed off to leave UK like-for-like sales flat in the eight weeks to last Saturday, compared with the 1.9% improvement seen in January.

Shares dived 8% after the company said underlying profits for the year to the end of April will be in the range of £3.5million to £5.5m, against £9.7m a year earlier.

As well as the slow recovery in the UK, Carpetright has continued to face difficult trading conditions in the Netherlands, which is the company’s second biggest market with 95 stores.

Executive chairman Lord Harris said: “In our last trading statement, we reported that like-for-like sales in the UK were volatile, and this remains the case.

“Nevertheless, based on previous experience we had expected to see some recovery as UK housing transaction volumes improved.

“In the event, this has yet to materialise and the momentum established in the third quarter was not sustained.”

Cantor Fitzgerald retail analyst Freddie George slashed his profits forecast to £4.5m from £8.5m in the wake of today’s update.

He added: “We continue to believe that the company’s conforming format is not effective enough against the independents. It is too focused on price, in our view, and not aspirational enough for mainstream customers.”

2 comments

  • We don't simply run out of carpet like we do milk. There's only so many carpets you can sell!

    Report this comment

    TrollFace

    Thursday, March 27, 2014

  • We don't simply run out of carpet like we do milk. There's only so many carpets you can sell!

    Report this comment

    TrollFace

    Thursday, March 27, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Police in Ipswich were today investigating an allegation of a serious sexual assault near the town centre.

Another person has been bailed over the stabbing in Ancaster Road, Ipswich.

A blaze in the early hours in Claydon has damaged a children’s activity resource centre.

Youngsters from Ormiston Endeavour Academy in Ipswich joined up with their peers from Ormiston Victory Academy in Norwich last week for a combined skiing trip to Tonale, Italy – marking the start of what could be a more common tie-up between the two.

More than 60 people who previously never took part in any physical activity gathered at Gainsborough Sports Centre in Ipswich on Friday for the ActivIpswich new age kurling competition.

Police are searching for a man in a car who approached a nine-year-old girl in Stowmarket.

The Buttermarket Shopping Centre first opened on October 1, 1992 - a modern, glass fronted shopping centre with a green-theme.

More details have been unveiled for this year’s Raising the Bar Awards – with people across Suffolk being urged to get involved to celebrate those striving for excellence in education.

A leisure centre has reopened today following a closure of more than two months due to the discovery of the Legionella bacteria.

Parents have criticised the decision of an Ipswich school to go-ahead with a trip to a theme park despite the threat of an amber weather warning after claims a tree fell onto a slide the children were playing on.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24