Yahoo Finance Carpetright shares slide as boss warns of ‘volatile conditions’
Carpetright shares fell 6.36pc this morning after the flooring retailer said profits would be lower in the first half of this year and its chief executive warned of "volatile" trading conditions.
Group sales were up 1.8pc in the 25 weeks to October 21, boosted by 6.3pc like-for-like sales growth in its international arm. UK same-store sales were up 0.8pc, with a 2.1pc increase in flooring sales offset by declining demand for beds.
"Trading conditions in the UK remained volatile over the first half," said chief executive Wilf Walsh.
The company now expects profits in its first half to be lower than the £4.1m it reported in the same period last year.
Britain's biggest flooring retailer forecasts a stronger second half and expects full-year profits to fall within previous expectations of £13.8-£16.7m.
Sales in Carpetright’s 136 overseas stores, in Belgium, the Netherlands and the Republic of Ireland, were "equally volatile" as the UK, Mr Walsh said.
The company’s shares opened 6.36pc down at 170p, but rebounded to 180p later in the morning.
"While full-year profit expectations are higher than last year’s reported figure, this will likely be achieved through cost savings and international sales rather than robust UK sales over the next six months," said Matt Walton, senior data analyst at GlobalData.
"Consumer confidence remains fragile," Mr Walton added, suggesting that the weaker housing market could dampen demand further.
Carpetright has closed a net seven UK stores this year. More than half of the remaining 419 have now been refurbished.
