Trading still tough at Carpetright
Carpetright plc has reported a 1.5% drop in group sales for the 12 weeks to 23 July 2011. Sales in the UK declined by 2.3% and like-for-like sales were down 0.2% compared to a 3.4% fall in 2010.
Total sales in Rest of Europe (The Netherlands, Belgium and the Republic of Ireland) fell 2.3% with like-for-like sales down 1.7%.
The company, which has issued three profit warnings this year, said the improvement had been driven by its strong promotional activity, the growth of its bed sales and the roll out of a new laminate flooring offer.
Lord Harris of Peckham, chairman and chief executive, said: “Looking forward, I see no respite from the challenging environment over the next year but remain confident the Group will emerge in a strong position to deliver future growth once consumer demand improves.”
Carpetright closed 25 stores in the first quarter, partly as a result of the forced exit of its concessions in 16 Focus stores following the DIY firm’s collapse earlier this year. However, the company said it plans to open five new stores in the Netherlands where it believed there was potential to grow market share despite the tough traing conditions.
The company warned that that its full year gross margin will be around 200 basis points lower than the previous year.
