Partly Cloudy

Partly Cloudy

max temp: 22°C

min temp: 22°C

ESTD 1874 Search

Retail: Carpetright issues its third profits warning in six months

10:26 26 March 2014

Carpetright has issued its third profits warning in six months.

Carpetright has issued its third profits warning in six months.

Carpetright warned over profits for the third time in six months today after admitting it has yet to benefit from the UK’s housing market recovery.

shares

The floor coverings retailer said signs of improvement reported earlier this year had tailed off to leave UK like-for-like sales flat in the eight weeks to last Saturday, compared with the 1.9% improvement seen in January.

Shares dived 8% after the company said underlying profits for the year to the end of April will be in the range of £3.5million to £5.5m, against £9.7m a year earlier.

As well as the slow recovery in the UK, Carpetright has continued to face difficult trading conditions in the Netherlands, which is the company’s second biggest market with 95 stores.

Executive chairman Lord Harris said: “In our last trading statement, we reported that like-for-like sales in the UK were volatile, and this remains the case.

“Nevertheless, based on previous experience we had expected to see some recovery as UK housing transaction volumes improved.

“In the event, this has yet to materialise and the momentum established in the third quarter was not sustained.”

Cantor Fitzgerald retail analyst Freddie George slashed his profits forecast to £4.5m from £8.5m in the wake of today’s update.

He added: “We continue to believe that the company’s conforming format is not effective enough against the independents. It is too focused on price, in our view, and not aspirational enough for mainstream customers.”

shares

2 comments

  • We don't simply run out of carpet like we do milk. There's only so many carpets you can sell!

    Report this comment

    TrollFace

    Thursday, March 27, 2014

  • We don't simply run out of carpet like we do milk. There's only so many carpets you can sell!

    Report this comment

    TrollFace

    Thursday, March 27, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Growth in manufacturing eased last month  to its slowest level in two years.

Britain’s manufacturing sector grew at its slowest pace in more than two years last month, impacted by subdued demand from Europe.

Speedy Hire
 has warned that its results for this year will come in

Tool rental business Speedy Hire saw nearly a third of its stock market value wiped off after it announced the shock departure of its chief executive and warned over a major blow to full year profits.

Greene King chief executive Rooney Anand.

Pubs and brewing group Greene King today posted another year of record revenues, with sales within its key Retail division topping £1billion for the first time.

Suffolk Coastal considers convenience store bid

Planning chiefs have responded to concerns about noise and antisocial behaviour arising from proposals for a new convenience store in Kesgrave by insisting on closing times being brought forward an hour and the installation of a barrier to restrict overnight parking.

Tim Dunford, managing director and master brewer at the Green Jack Brewery, third from left, with Beer for Summer judges Mark Dorber, left, and Charlie McVeigh of The Draft House, right, and Peter Gordon, on trade director of Budweiser Budvar.

A Suffolk brewing company is celebrating after winning a new national “Beer for Summer” competition.

Most read

Most commented

Topic pages