Carpetright shares plunge as firm floored by fragile consumer confidence
CARPETRIGHT shares fell by 6 per cent yesterday as the firm was floored by fierce competition and fragile consumer confidence.
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The floor-coverings retailer posted a near-60 per cent drop in underlying interim pre-tax profit to £2.1 million, despite 2.6 per cent higher revenue of £228.1 million, and warned second-half profit would be towards the bottom end of market expectations.
Bed sales were hit by the clearance of discontinued lines, while European operations fell into the red after deeper discounting promotions.
Shares fell 11p to 174p.
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The first half has undoubtedly been challenging. Consumer confidence remains fragile and we continue to manage the impact of intensified competition
Carpetright chief executive Wilf Walsh said: "The first half has undoubtedly been challenging. Consumer confidence remains fragile and we continue to manage the impact of intensified competition."
Mr Walsh added: "We have made pleasing progress in our core flooring business in the UK - like-for-like sales are up, more than half the UK store estate has now been refurbished and our customer service metrics have been improved significantly.
"However, as previously flagged, our first half profits reflect the impact of the clearance of discontinued lines in our beds business and also unsuccessful deeper discounting promotions in the Netherlands and Belgium, which are now being addressed."
