THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
The Papers
Retail Solutions
Food & Drink
Carpetright reports increased full year profits

Carpet and flooring retailer Carpetright has reported making a year of significant progress with “solid” growth in profit.


Carpetright reports increased full year profits

Carpet and flooring retailer Carpetright has reported making a year of significant progress with “solid” growth in profit.

In the 52 weeks to 30 April, underlying profit before tax rose by 33.1% to £17.3 million but group revenue decreased by 1.3% to £456.8 million as the retailer rationalised its store estate. Statutory pre-tax profit was up 137% to £12.8 million.

UK like-for-like sales edged up 2.8% while UK underlying operating profit climbed by 17.5% to £16.8 million. The company said it had made significant progress in reducing the number of underperforming UK stores with a net 25 closures to take the total UK estate to 435 stores.

In the retailer’s Rest of Europe business like-for-like sales grew by 4.8%. Underlying operating profit was £2.5 million compared to £0.3 million in the previous year.

Carpetright said it was embarking on a range of strategic initiatives to update and broaden the appeal of its brand. These include introducing the new Carpetright branding across the business from 1 July, a phased refurbishment of the UK store estate, and the launch of new hard flooring sections in UK stores.

Wilf Walsh, Carpetright chief executive, said: "I am pleased to able to report on another year of significant progress. The group has again delivered solid growth in profit, accompanied by consistent like-for-like sales growth in both the UK and Rest of Europe, whilst establishing real momentum with its plans to update and revitalise its business."

Looking at current trading, Carpetright said it had experienced a challenging start to the new financial year against strong comparatives in the prior year and an increasingly competitive market. In the UK May was a difficult month with like-for-like sales down 7.6% but June was better with sales up 6.3%. These figures combine to give a decline of 1% for the eight weeks to 25 June. In the Rest of Europe like-for-like sales rose by 1.3% on a local currency basis over the same period.

Walsh added: “The outlook has been further complicated by the outcome of last week's referendum and we are cautious about the impact the associated uncertainty will have on consumer confidence.

"Whilst we have a long journey ahead in transforming Carpetright, we have a clear direction and are confident that our plans for repositioning the business will yield positive results."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Conference
The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
The 11th HR Summit 2019, Hallam Conference Centre, 44 Hallam St, Marylebone, London W1W 6JJ
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy