Carpetright pledges to meet full-year profit target

 
Helen Cahill
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Carpetright's chief executive Wilf Walsh (Source: Carpetright)

Carpetright's chief executive today said the firm's half-year profits would be below last year's, but assured investors that he will meet full-year consensus estimates.

The figures

For the 25 weeks ended 21 October, Carpetright's total sales grew by 1.8 per cent. Like-for-like sales edged up 0.8 per cent.

There was a net reduction of seven stores in the year to date, meaning Carpetright now has 419 stores.

Read more: Pound drops against dollar and euro as ONS reveals retail sales slump

Across the rest of Europe (Carpetright trades in Ireland, the Netherlands and Belgium) like-for-like sales climbed 6.3 per cent.

Why it's interesting

Although Carpetright expects a fall in half-year profits, the flooring retailer said today that its full-year profits will fall within consensus estimates this year.

Analysts expect underlying profit before tax to come in at £15.8m.

Neil Wilson, senior market analyst at ETX Capital, said Carpetright had its "foot to the floor".

"Slowing growth and a slew of profit warnings at retailers and DIY merchants has been pounced upon as a sign that UK discretionary spending is on the brink," he said.

Carpetright has made a significant investment in its stores, but Wilson said this was yet to pay off.

What Carpetright said

Wilf Walsh, chief executive of Carpetright, said: "Whilst we expect the group first-half profit to be below that of the prior year, we are pleased with the improvement in sales in the rest of Europe and beds in the UK over the past few weeks.

"When these are combined with continued progress in our core flooring category we expect a significantly stronger second half with full year profit within the current range of market expectations."

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