Yahoo Finance Carpetright's new look aids sales recovery amid retail jitters
Carpetright has provided some much-needed cheer for Britain’s battered retail sector, reporting solid sales momentum despite “fragile” consumer confidence.
The flooring retailer said an improvement in second-half sales meant revenue from UK stores open for more than a year slipped just 0.5% across the full year.
In the first seven weeks of its new year, same-store sales were up 2%, it added.
The figures, which were being closely watched for signs of a slowdown in consumer spending, sent the shares 20p, or 11%, higher to 195.4p. Boss Wilf Walsh put the performance down to “self-help” measures, including a store refurbishment programme, and the strength of its brand.
“Consumers are a little bit fragile. If it does get tough, consumers revert to brands they know and can trust. I wouldn’t want to be a new entrant.”
But sterling’s fall in value and the cost of action to fend off competitors like newcomer Tapi took a toll, with underlying pre-tax profit tumbling 21% to £14.4 million.
Meanwhile, net debt rose to £9.8 million from £1.1 million as a result of the stores revamp.
