Group CEO Wilf Wash said the first half has "undoubtedly been challenging".
Companies: Davide Campari-Milano N.V.
Carpetright (LON: CPR) has warned on full-year profits today as it reports its lacklustre H1 18 Interims.
The retail group, who has undergone a major transformation including a rebrand and store refurbishments, reported Revenue growth of just 2% to £228m whilst Underlying PBT fell 60% to £2.1m.
Net debt also swelled £22.8m as the Group funds its refurbishment program, which now consists of more than half its stores.
In its UK operations, Profits slumped as it clears discontinued lines in its bed business whilst in Europe, "unsuccessful deeper discounting promotions" have had a negative impact.
Group CEO Wilf Walsh was honest in his comments, saying:
"The first half has undoubtedly been challenging. Consumer confidence remains fragile and we continue to manage the impact of intensified competition.
...In light of the consumer outlook we are taking a more cautious view of the second half and now expect underlying profit before tax for the full year will be towards the bottom end of the current range of market expectations."
CPR shares dropped 8% on Tuesday, continuing the stocks downward trend in 2017.
Singers note on the Group today was as expected:
"Despite encouraging share gains in the UK from the strategic transformation, and an expectation that Bed performance will strengthen in H2, domestic conditions are tough and the shortfall left by Europe is unlikely to be offset. FY guidance is therefore towards the lower end of the range, implying downgrades of c5-6%."
After reporting Revenues of £457m and PBT of £14m in FY17, Singers forecast these figures to grow to £464 and £15m in FY18 and £467m and £18m in FY19.
