Carpetright like for like sales decline 2.9%

Carpetright has confirmed that its full year profits forecast remain unchanged after reporting that like-for-like sales declined for the 25 week period to 22nd October 2016, declined by 2.9%.

The company also confirmed that it has revised its full year guidance of a decline in gross profit percentage to between 150 and 200 basis points, due to a combination of increased sourcing costs following the devaluation of sterling and increasingly competitive market conditions.

Like-for-like sales for the the Rest of Europe business including The Netherlands, Belgium and the Republic of Ireland, increased by 0.9% in local currency terms.

Carpetright chief executive Wilf Walsh, said: "Trading conditions in the UK in the first half reflect variable consumer demand and increased competitive pressures. Against this background, our plan to revitalise the UK business remains on track and we are now almost halfway towards our target of 100 store refurbishments in the current financial year, with investment in the first half weighted to the latter part of the period.”

The retailer confirmed that 49 stores are now trading under Carpetright’s new brand identity and are delivering sales growth above comparable stores in the rest of the estate. They have opened one new store and closed seven in the year to date to give an overall total of 429 branches.

The introduction of new hard flooring sections in 26 of their stores has contributed to a 15% increase in laminate and luxury vinyl tile sales.

Walsh added: "As we enter the second half, we are looking forward to implementing the next phase of our refurbishment and rebranding programme as we continue our drive to update and revitalise the business. With the benefit of recent UK investment expected to flow through as the second half progresses, further significant refurbishment work already underway and a continued improvement in the Rest of Europe, our guidance for the year as a whole remains unchanged."

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Source: Insight DIY Team