- Full year margins will decline between 100 and 150 basis points due to a “more promotional marketplace”
- Like-for-likes edged up 2.4% in the UK but accelerated to 6% in the final four weeks of the quarter
- Rest of Europe like-for-likes increased 4.2% in local currency
Carpetright like-for-likes edged up 2.4% in its third quarter, although promotions are set to impact full-year profit margin.
However, Carpetright said profit expectations remained unchanged.
The retailer said gross profit percentage for the year had been revised to a decline of between 100 and 150 basis points due to a “more promotional marketplace” and the fact beds and smooth flooring made a greater proportion of the sales mix.
Total sales dipped 1.3% over the quarter to January 23, however in the last four weeks of the period like-for-likes accelerated to 6%.
Carpetright chief executive Wilf Walsh said: “In the UK, we delivered our ninth consecutive quarter of like-for-like sales growth. While we saw some softening of like-for-likes in the pre-Christmas period, reflecting lower footfall, customer numbers recovered in the important January Sale period.
“Our trading performance over the last four weeks, with like-for-like growth of 6% against exceptionally strong prior-year comparatives, gives us confidence that the enhanced interest-free credit offer and strong promotions launched on Boxing Day are hitting the spot with our customers.”
In the rest of Europe, like-for-likes advanced 4.2% year on year and total sales rose 4.4% in local currency over the quarter. However, after the impact of currency movements, sales dipped 2.7%.