Carpetright delivers better than expected first half

Total sales jumped 9.5% while revenue across the group grew 8.9%.

At its European arm, which comprises The Netherlands, Belgium and Poland, total sales decreased 4.5% in constant currency terms, with like-for-likes down 5.4%.

Allowing for the movement in exchange rates, total sales increased 6.4%.

Carpetright opened a net 11 new stores in the last 12 weeks.

Chairman and chief executive Lord Harris of Peckham said: “We are pleased with oor overall performance during the period.

“Our discussions with house builders and insurers have begun to secure us additional business and we expect to continue to make progress in this area during the second half. The underlying carpet margin has remained in line with last year, whilst the greater proportion of beds sales in the mix has resulted in the overall UK gross profit percentage dropping by around 60 basis points.

“As expected, sales in The Netherlands and Belgium decreased as a consequence of slowing economic conditions. However, we believe we continue to grow market share and are well positioned to capitalise on this when trading conditions improve.

“We expect to deliver a half year profit performance ahead of expectations and, whilst we remain cautious about the retail market in the balance of the financial year, we have made a solid start.”

Shore Capital analyst Kate Calvert said the results were “much better than” expected.