Carpetright bugged by latest profit downgrade
The downward spiral in profits at Carpetright continued yesterday after the retailer warned its markets remained "weak and volatile".
The group made £16.9m in its previous financial year but now estimates underlying profits for the year to April 28 will be in the region of £3m and £4m - below City forecasts of £7m.
Carpetright, which has 491 stores in the UK, blamed weaker than expected sales of bed ranges and a deterioration in trading in the Netherlands and Belgium for the latest downgrade.
Chairman and chief executive Lord Harris said a return to like-for-like sales growth in its core UK business over the 11 weeks to April 14 offered some hope for the new financial year.
However, he added: "The fragile confidence of our customers continues to produce a weak and volatile floorcoverings market."
Shares fell 5% as it emerged the group's sales were down 4.3% over the financial year.
Seymour Pierce analyst Freddie George said it appeared the chain was focused on price rather than value for money and service.