Carpetright warns on FY profit

1st Feb 2011 07:48

Specialist carpet and floor coverings retailer Carpetright warned it now expects profits for the year to 30 April 2011 to be below the current range of market expectations as difficult trading conditions continue.Group sales declined by 6.4%, with the year on year effect of closing its operations in Poland accounting for 0.4% of this decline.UK and Republic of Ireland sales declined by 5%, with like-for-like sales down 7.7% for the 13 weeks ended 29 January 2011. In local currency terms, total sales in the Netherlands and Belgium fell by 3.5% with like for like sales down 5%. Including currency movements, this translates to a total sales decline of 11.2% the group said.Chairman and chief executive Lord Harris of Peckham said, "The tough trading conditions in the UK and Republic of Ireland have continued into the third quarter of our financial year, with adverse weather conditions and fragile consumer confidence producing a difficult floor coverings market." Carpetright reiterated that it expects January trading to be boosted by the impact of snow in the comparative period.However despite achieving an increase in sales year on year since Christmas, it has not been at the level expected. "This causes us to remain cautious about the outlook for the remainder of the financial year," it said in a statement.Carpetright expects the total UK & Republic of Ireland full year margin to be in line with previous guidance of a 50 basis point increase on last year as it continues to focus on cost controls. and the likely outturn for the balance of the year, below last year, although ahead of those achieved in the 2009 full year.