Like-for-likes fell 13 per cent in the UK and Ireland, with total sales declining 11.1 per cent. The retailer said trading during November was “below expectations”.
Like-for-likes in Europe climbed 5.9 per cent in the six-month period, giving a group average of a 11.1 per cent fall in like-for-likes.
Total sales across the group dropped 5.7 per cent to£236 million in the period.
Carpetright chairman and chief executive Lord Harris said: “Trading during November was below expectations and like all non-food retailers, we expect it will remain very difficult. The board anticipates the results for the full year will be significantly below current consensus.”
In the rest of Europe – including The Netherlands, Belgium and Poland – Carpetright faired better, with underlying operating profit rocketing by 29.2 per cent to£3.1 million, and total sales growing by 31.9 per cent.
Gross margin was in line with last year at 62.4 per cent. Operating costs increased by 1.8 per cent to£113.1 million.
Since May this year, Carpetright's headcount has reduced by 200, mostly through natural wastage.
Its board slashed the interim dividend to 4p, down from 22p last year.
The majority of the Carpetright’s banking facilities are due for renewal in September 2009.
Carpetright acquired bed concession Sleepright earlier this month and has introduced it into 93 stores.
At the end of the period, there were 561 Carpetright stores trading. The retailer expects “a limited number” of new openings in the second half as it focuses on existing outlets.
It extended the number of 'Madness' promotions from two to three in the first half, which aided sales volume with a small impact on margin percentage.
The depreciation of sterling relative to the Euro has adversely impacted its cost prices, as the majority of products are sourced from Europe.
Carpetright said it witnessed “unprecedented turmoil” in world financial markets and the banking sector, and that the trading environment continues to be “extremely difficult”.
It believes it will be at least 18 months before it sees a return to more normal trading conditions.
Lord Harris said: "As I have previously said, I expected my 51st year of selling carpets to be extremely challenging, and it has proved to be the case.
“Our plan is to manage the business through this period of economic downturn by continuing to exert tight control over all costs, capital expenditure, stock and cashflow.
“Notwithstanding the current difficulties faced by consumers, Carpetright has a strong brand and we are confident in our ability to compete by continuing to improve our operational delivery, focusing on value, choice and service.”
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