Carpetright trading continues in line with expectations

Carpetright, the flooring covers retailer, has said like-for-like (LFL) sales in the UK in the 12 weeks to April 20th grew 5.6 per cent, while total sales increased 4.4 per cent.

Carpetright, the flooring covers retailer, has said like-for-like (LFL) sales in the UK in the 12 weeks to April 20th grew 5.6 per cent, while total sales increased 4.4 per cent.

However, as anticipated LFL sales in the Rest of Europe decreased 10.2%, with a solid performance in Belgium and the Republic of Ireland offset by continued weakness in the Netherlands.

The group also said trading in the financial year-to-date has been in line with its expectations.

Darren Shapland, Chief Executive, said: "Whilst the recent cold spring weather has been positive to our sales, we believe this performance reflects the continued success of our programme of self-help initiatives [...]

"This has been achieved in a market which remains challenging with consumers very focused on getting a good deal, necessitating a highly visible and compelling promotional programme."

The company also revealed that its gross margin for the period has been in line with previously announced expectations and its view of the full year gross profit percentage improvement is now in the range of 225-250 basis points above the prior year.

In repsonse to the company's performance in the Rest of Europe, Shapland added: "The actions we took earlier in the year when deteriorating economic conditions in the Netherlands prompted a significant decline in the furnishings and home improvement sector are now helping support our overall profitability in this country.

"The group result for the year to date is in line with management's expectations and whilst trading conditions remain challenging, we have good momentum with our self-help initiatives which we believe will carry onto the new financial year."

NR

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
The ten highest dividend yields on Aim
Income investing

The ten highest dividend yields on Aim

Rupert Hargreaves picks the highest-paying dividend stocks on Aim, London’s junior market for small and medium-sized growth companies.
29 Jun 2022