Carpetright expects strong first half

28th Oct 2009 07:18

Floor coverings retailer Carpetright expects half-year results to be ahead of expectations after sales growth put on a spurt in the last six weeks.Group sales in the 12 weeks to 24 October were 10.3% than in the corresponding period of 2008.Sales in the UK and Republic of Ireland (ROI) were up 12.2% year on year (YOY), and were 5.6% higher on a like for like (LFL) basis. The LFL increase represents an improvement on the 1.4% YOY increase seen in the 13 weeks to 1 August 2009.In the 25 weeks to 24 October UK & ROI LFL sales are up 3.5% YOY.The picture is a bit mixed in the rest of Europe, with sterling’s weakness disguising a decrease in sales.Total sales in the 122 weeks to 24 October in the rest of Europe were up 1.6% in sterling terms, but down 9.9% in constant currency terms. LFL sales were down 8.2% in constant currency terms YOY.The slowdown in sales reflects grimmer economic conditions in the Netherlands and Belgium.‘The underlying carpet margin has remained in line with last year, whilst the greater proportion of beds sales in the mix has resulted in the overall UK gross profit percentage dropping by around 60 basis points,’ said Lord Harris of Peckham, chairman and chief executive of Carpetright.