UK like for like sales growth slows at Carpetright
Wilf Walsh, Carpetright chief executive says his effort to revitalise the county’s largest flooring retailer’s brand ‘is on track.’
The chain saw UK like for like sales rise by 4% in the 25 weeks to 24 October. This compares with a 4.9% rise in the eight weeks to 27 June and a rise of 7% in the 2014 equivalent period.
Total UK sales climbed by 2.5%.
In the Republic of Ireland, Netherlands and Belgium like for like sales were up 8.9% in Euro terms and by 2.7% in total. The weakness of the Euro resulted in a 6.9% drop in Sterling sales.
The group says its forecast of a drop in gross margin of between 50 and 100 basis points is unchanged and it still expects to make a group underlying pre-tax profit of £16m to £19m for the year ending 30 April 2016.
“I am pleased to report that the group continued its positive trading performance during the period. In the UK we delivered encouraging sales growth against strong comparatives in the prior year and continue to gain market share. Sales in the rest of Europe have also continued to recover,’ says Walsh.
‘Our aim to revitalise the Carpetright brand is on track. We have made further progress with the strategy of rationalising and repositioning our store portfolio and are encouraged by the early performance of our four trial concept stores in the UK. We will update shareholders on progress of our strategic initiatives at the time of the interim results on 15 December.
‘Trading in the year to date remains in line with management's expectations and our view for the year as a whole remains unchanged.’