Carpetright issues another profit warning

7th Apr 2011 07:29

Carpetright has become the latest British retailer to warn on profits.In its second profit warning this year, the flooring and carpet retailer says it now expects pre-tax profits for the year to 30 April to be in line with those achieved in its 2009 financial year, when trading was hit hard by the economic crisis. Earlier in the year it had said that profits for the current year would be below the prior year but ahead of 2009.Carpetright earned just £17.2m in 2009, while profits in 2010 were £28.2m.The company has been suffering from a tough consumer environment in Britain and Ireland. It warned in February that earnings in the year to 30 April would be below expectations. "Since the date of that statement, difficult trading conditions have persisted in the UK and Republic of Ireland, with fragile consumer confidence producing a weak floor coverings market," the company said today. "As a result, we now expect underlying pre-tax profits for the year to 30 April 2011 will be broadly in line with the level of profits achieved in the 2009 full year. "A full update on trading will be issued on 27 April.Earlier this week HMV, the music and film retailer, issued the latest in a series of profit warnings.---RG