Carpetright maintains profit expectations as like-for-likes creep up

The carpet specialist said UK like-for-likes rose 2.9% for the full year ended April 23.

Like-for-likes at the retailer’s 137 stores in the rest of Europe increased by 1.9% during the period and 4.6% across the financial year.

However, total group sales fell 0.9% during the period and are flat for the year owing to two store closures during the 12-week period and 25 closures across the year. 

Carpetright now has 434 UK stores, compared to 459 this time last year. 

Chief executive Wilf Walsh said: “The UK business continued to make progress in the final quarter, against strong comparatives in the prior year and in a market which was increasingly competitive.

"Against this background, we have delivered two year compound like-for-like sales growth in excess of 10% and, having rebalanced our promotional activity, are pleased to report revised gross margin guidance for the full year of a decline of around 80 to 100 basis points, an improvement on the previous range.

"Our plan to revitalise the Carpetright brand remains on track. Results from the trial of our new retail concept have been encouraging with the trial stores outperforming comparable stores in the estate.

"We have now completed our analysis of the customer data from the trial, enabling us to finalise the features of a new-store format and brand identity which we will shortly begin to roll-out across our UK business in a phased refurbishment programme.

"Trading in the rest of Europe continues in line with our expectations.”

Carpetright’s like-for-likes edged up 2.4% in its third quarter, although total sales dipped 1.3%.