Agenda: Carpetright and Gear4Music update the market

Carpetright

Carpetright posts its full-year results on Tuesday.

The specialist retailer recorded an underlying pre-tax loss of £12.4m for the 26 weeks to October 27, 2018 – down from a profit of £1.2m during the comparable period the previous year – but said it was on track to be profitable next year.

Chief executive Wilf Walsh attributed the decline in profits to “challenges around stock availability, negative sentiment associated with the restructuring process and weak consumer demand”.

Last June the retailer faced negative headlines after it racked up £70.5m of pre-tax losses during the year to April 28, 2018, which it blamed on restructuring costs and its CVA.

Gear4Music

Gear4Music posts its preliminary results on Tuesday.

In April the online specialist music retailer posted a 36% increase in total revenues to £118.3m in the 13 months to March 31, but lowered its EBITDA expectations from £3.3m to “not less than £2m”.

A combination of courier cost inflation and capacity problems at its York distribution centre were to blame for the profit hit.

Gear4music remained confident that the “growth-related factors” will not continue into the new financial year and that its “long-term strategy remains firmly on track”.

It was the retailer’s second profit warning this year after struggling with warehouse logistics over the Christmas trading period.

GFK Consumer Confidence Index

The GFK Consumer Confidence Index for June is released on Wednesday.

The survey measures general economic and personal financial situations and consumers’ spending and saving.

The overall index score for the month of May was -10, up three percentage points from -13 in April, but down three percentage points year on year.

Consumers’ personal financial situation over the past 12 months saw a four percentage point increase to +3, while optimism about finances over the next 12 months was at +5, up from 0 in April.