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.

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.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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