Updated 10:43pm 23 October 2012

Small sales improvement for Carpetright

Carpetright’s tentative recovery in the UK continued today after the floor coverings chain posted another small improvement in underlying sales.

The group, which has 484 outlets in the UK, said self-help actions such as its drive to sell more beds, the extension of laminate ranges to more stores and the impact of shop refits were helping to offset volatile trading conditions.

Its like-for-like sales figure increased 0.6% in the 12 weeks to October 13, following on from a rise of 1.7% in the previous quarter.

While the figures were against comparisons with poor trading a year earlier, Carpetright said it was performing in line with expectations.

The UK improvement, which increases to 2.4% when excluding business achieved through insurers and housebuilders, has been offset by a sharp drop in sales in the Netherlands, Belgium and Ireland.

Carpetright blamed weakening consumer confidence for the 12.2% drop in rest of Europe same-store sales in the period.

Freddie George, retail analyst at Seymour Pierce stockbrokers, said UK sales were now going in the right direction with three quarters of positive like-for-like sales growth following two years of declines.

He added: "Earnings should start to recover but not in our view back to the record operating profit levels of over £60m seen in 2004.

"It will, we believe, be a long time before housing activity, the main driver of results, gets back to the highs of the last decade."

The group, whose profits have slumped to £4m from £62m in 2008, is now under the management of new chief executive Darren Shapland.

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