Carpetright reports increase in sales and profit
Carpetright has reported a 6% increase in its first half pre-tax profit as the carpet and flooring retailers like-for-like sales continue to improve.
In the 26 weeks to 31 October, group revenue rose by 1.4% to £231.2 million while pre-tax profit increased by £0.4 million to £7.1 million. Underlying pre-tax profit climbed by 34.3% to £9 million.
In the UK, total revenue increased by 2.6% with sales lost from store closures being more than offset by like-for-like sales growth of 3.7%.
During the period Carpetright opened five UK stores and closed 27 which translated into a net space decline of 161,000 square feet, a decrease of 4%.
Like-for-like sales growth across Carpetright’s Rest of Europe business accelerated from the 2% growth experienced in the second half of the prior year to a 5.5% rise in the first half of the current financial year. After exchange rate movements, total revenue fell by 5% in reported currency.
Wilf Walsh, Carpetright chief executive, said: "I am pleased to be able to report the Group continued its positive like-for-like sales performance and grew profits significantly during the first half. In parallel, we made good further progress with a wide-ranging programme of initiatives to extend the appeal of the Carpetright brand and address significant legacy property issues.
"The trial of a new retail concept and brand identity is, as expected, producing much valuable customer insight. A comprehensive customer research study will be completed by the end of January 2016, giving us a more detailed picture which will inform our decisions on which elements we will roll-out across the existing estate.
"In a retail market which remains very competitive, we are confident that our plan to build on Carpetright's strong foundations, modernise the business, and ensure we capitalise on our advantages as market leader to the full, is on track. Our full year profit expectations remain unchanged."
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