Carpetright suffers more profit woe
The group made £16.9 million in its previous financial year but now estimates underlying profits for the year to 28 April will be in the region of £3m to £4m. The City had adjusted its forecast down to £7m in January, while the most recent downgrade is sharply down from the £12m to £17m the company forecast in October.
Carpetright, which has 491 stores in the UK, blamed the gloomy update on disappointing bed sales and a deterioration in trading in continental Europe.
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Hide AdChairman and chief executive Lord Harris said a return to like-for-like sales growth in its core UK business over the 11 weeks to April 14 offered some hope for this financial year.
However, he added: “The fragile confidence of our customers continues to produce a weak and volatile floorcoverings market.”
The company said sales were down 4.3 per cent over the financial year.
Harris founded the company with a single store in Canning Town, east London, in 1998 and floated on the London Stock Exchange five years later. He has a near-20 per cent stake in the business, while Microsoft billionaire Bill Gates owns about 6 per cent.
Carpetright updated its range of beds at the start of this year, resulting in marginal growth on a year ago in the quarter.
However, there were some encouraging signs from the UK, with the 32 stores refurbished to date outperforming the rest of the estate.