Belfast Telegraph

Carpetright's margins suffer but the sales are still up

By Roger Baird

Retailer Carpetright reported "small but steady" progress in the UK but warned sales continue to be driven by promotional activity.

The floor coverings business, which has 467 stores in the UK, of which seven are in Northern Ireland, posted a lift in like-for-like sales of 6.1% in the 13 weeks to last Saturday, as it benefited from growth in May and June and easier comparisons with last year.

But the improvement came at the expense of margins, which fell in the period due to its "market beating promotions".

It said UK margins will now be lower across the financial year, having previously said they would be flat.

Carpetright, which recently posted losses of £7.2m for the year to April 26, still hopes that profits at an underlying level will reach £9m this year.

The company has so far modernised 283 of its UK shops in an effort to give them more natural light, updated signage and better layouts.

At its European division, made up of Ireland, the Netherlands and Belgium, like-for-like sales fell 3.6%.

Belfast Telegraph