Carpetright has revealed its full-year pre-tax profits will be ahead of expectations as its European operation enters the black.
Strong UK sales and the European turnaround mean Carpetright expects to reveal a £13m pre-tax profit in June, up from a profit of £4.7m in its last financial year.
Profits at the European operation, which includes the Netherlands, Belgium and the Republic of Ireland, has undergone a £4m turnaround.
Carpetright chief financial officer Neil Page said the European business will “be in profit this year” after posting a £3.8m loss last year.
Page said: “That is a significant turnaround and now it is about building on the sales growth because we have achieved that with sales that have been slightly negative in the whole year.”
The full-year expectations were unveiled as the retailer reported its fourth-quarter results. In the quarter ending April 18 Carpetright increased like-for-likes by 2.4% in its European operation.
However, total sales decreased 0.7% and when currency movements are taken into account they fell by 12.6%. Carpetright now has 137 stores across Europe, compared with 142 stores in the same period last year.
Carpetright chief executive Wilf Walsh said that “after a few lean years” the retailer’s performance is being boosted by a renewed confidence among staff.
Walsh said: “A bit of success breeds confidence and gets people motivated.”
The carpet specialist has also been improving sales momentum in the UK.
Like-for-likes in the UK increased by 10.5% during the period on the back of promotions and its interest-free credit offer, while total sales rose 9%.