Carpetright has issued its second profit warning of the month and third of the year, after sales fell further in the 11 weeks to April 16
There was a 6.5% fall in total sales in the period, while UK like for likes were down 6.1%. Like for like sales in the European business were down 5.7% at constant exchange rates.
The company - which on April 7 said profits would be in line with those in 2009 - warned today that the level of profits would now be slightly below that achieved in the 2009 financial year.
“Tough trading conditions in the UK and Republic of Ireland continued into the fourth quarter of our financial year,” said chairman and chief executive Lord Harris, “with fragile consumer confidence producing a weak floor coverings market.”
Harris added that the company had also been hit by inflation in raw material costs, and that trading conditions had made it difficult to pass all these increases on to customers. This will mean the total UK and Ireland margin will be flat year-on-year.
The company has carried out a review of its Irish business, where sales have fallen 50% in the past three years. Six stores in the country are to be closed.
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