Carpetright sales improve a touch

Flooring retailer Carpetright said like-for-like sales in the UK improved 1.7%, as the wetter than usual weather encouraged shoppers into stores to pick up the latest deals in laminate flooring and beds.

The group, which issued a string of profits warnings in the past year, said it continued to the positive trend experienced in the second half of the last financial year and expectations for the year as a whole remain unchanged.

"This reflects, in part, the success of self-help actions such as the development of our bed proposition, extension of our laminate range to more stores and the impact of our store refurbishment programme," it explained in a company statement.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"We also recognise that, this period does include some benefit from the unusually wet weather, which has produced consistently positive customer footfall to our stores."

Total sales in the UK declined by 2.1% due to the reduction in the number of stores year on year.

Store base fell by four during the period to 486, of which 63 have now been refurbished.

Total sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) fell by 5.2% with like-for-like sales down 6.3% in local currency terms. After allowing for the movement in exchange rates, total sales declined 13.6% in Europe.

Chief executive Darren Shapland said: "The key driver in the performance of the Rest of Europe has been the deterioration of consumer confidence producing a weak and volatile floor coverings market in the Netherlands. The Republic of Ireland and Belgium continued to deliver sales growth."

Gross margin for the period continued to improve in line with previously announced expectations and it continues to project the full year to be in the range of 200-250 basis points above the prior year.

CJ