CARPETRIGHT yesterday reported a 15.4 per cent slump in like-for-like sales in the UK and Ireland in the 13 weeks to 2 August.
The group said it had been a demanding first quarter and warned conditions were likely to remain tough, but it added that it expected to gain market share through recent operational improvements.
The warnings come just a month after the firm repor
ted an 11 per cent drop in full-year pre-tax profits to £59.5 million.
Carpetright operates 559 stores in the UK and Ireland, including 60 concessions and 38 Storeys outlets.
David Stoddart, an analyst at Altium Securities, said the figures for the UK and Ireland were much worse than expected. He said in a note: "The first quarter last year was the strongest quarter of the year. Nevertheless, this is a disturbing sales performance from a strong market leader that we would expect to outperform the wider market."
Despite the company reporting a further improvement in margins, Stoddart said he expected a sharp reduction in his profit forecasts.
In the trading update, Carpetright said its rest of Europe business, based in the Netherlands, Belgium and Poland, continued to make solid progress, with sales in local currency improving by 8.2 per cent.
Lord Harris of Peckham, the chairman and chief executive who has previously indicated interest in buying the firm, said the tough first quarter in the UK reflected plunging consumer confidence and record low mortgage approvals.
He added: "The trading environment in the UK has become more difficult and we can see this continuing for the rest of our financial year.
"However, we believe that our recent operational improvements enhance our resilience to challenging market conditions and that our strong competitive position will enable the business to continue to grow market share."
The full article contains 308 words and appears in The Scotsman newspaper.
