Carpetright shares soar 12 per cent as sales rise

 
Jessica Morris
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Carpetright shares soared over 12 per cent today (Source: Getty)

Improving economic sentiment lifted sales at Carpet right and its shares have soared by more than 12 per cent today.

The figures

Carpetright -- the retailer which kits out homes with carpets, rugs and flooring -- said group revenues rose 2.6 per cent to £227.9m for the six months to the end of October, up from £222.2m in the same period last year. The company said that UK revenue rose 5 per cent but this was dragged down by a weaker performance in Europe where revenue fell 9.4 per cent.

Why it's interesting

Carpetright has contended with profit warnings as well as the unexpected departure of its chief executive in recent years so these results are something of a turnaround.

The company said "[in the UK] improving economic data has begun to feed through into consumer confidence and this is being reflected in consumer spending in our categories."

Nonetheless its outlook did flag potential pitfalls in relation to political and economic developments in the UK and Europe more generally.

In May the UK will go to the polls amid an increasingly fragmented mainstream political scene. Additionally, there first signs of a cooling in its once-hot housing market are beginning to emerge. Beyond this, the Eurozone is facing something of an economic quagmire, with dangerously low inflation rates and anaemic economic growth.

What Carpetright said

Wilf Walsh, chief executive, said:

We believe that, with a well researched and well executed strategy, we can begin to reshape Carpetright to ensure the business fully capitalises on its market leading position.

These changes will take time to take full effect but we are absolutely focused on maintaining the recent improvements in the performance of the Group, as well as devoting our energies to revitalising our brand and operations in line with contemporary customer expectations.

As a team we are excited by the potential that exists and are concentrating hard on executive of this new strategy as we enter 2015.

In short

After struggling since the global financial crisis Carpetright could finally out of the woods as it looks to revitalise its brand in the new year.

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