Increased like-for-like sales across Carpetright’s UK business drove a jump in pre-tax profit from £4m to £9.7m in its full year.
Despite the profit increase, turnover slipped 2.9% to £457.6m in its year to April 27.
Across the UK sales remained flat at £381.6m but like-for-like sales increased 2.2%. Its core retail business increased like-for-like sales 3.9%.
As part of its ‘self-help’ strategy, Carpetright refurbished 154 stores in the period, when sales jumped over 10%. It closed 12 shops, shrinking the property portfolio to 478, which contributed to an exceptional cost of £14.8m.
Gross profit percentage increased 260 basis points to 61.5%
In the rest of Europe sales fell 15.5% to £76m as like-for-like sales dropped 11%, pulled down by “difficult” trading conditions in the Netherlands.
Carpetright chief executive Darren Shapland said: “The success of our self-help activities in improving group performance during the period was particularly encouraging, demonstrating that a focus on factors within our control can yield good results.
“While we expect trading conditions to remain challenging, we are confident that the combination of these self-help initiatives will underpin the positive momentum of the group.”
Carpetright has been focusing on modernising its estate, adjusting the store portfolio, enhancing its range of floor coverings and services, optimising digital as part of its multichannel offer, developing its bed proposition and improving customer service.
Carpetright added that its bed offer, called Sleepright by Carpetright, recorded sales growth of 10.4% across the year. Beds now comprise 6.7% of total UK sales.