Like its competitors, Carpetright continues to be impacted by a lack of consumer confidence.
Companies: Davide Campari-Milano N.V.
Carpetright (LON: CPR) has today warned on its H1 profits in a trading update for the six months to October 21, citing continued "volatile" market conditions as the root cause.
During the period the Group saw LFL sales growth in its UK operations of just 0.8%, with growth of 2% within its core flooring category. Two new stores were opened and nine were closed, giving a net reduction of seven.
In Europe, LFL sales growth was slightly more encouraging at 6% with two stores also closed during the period.
Wilf Walsh, Chief Executive of CPR said:
"We expect the Group first-half profit to be below that of the prior year... We expect a significantly stronger second half with full-year profit within the current range of market expectations."
The stock dipped 5% to 170p in early morning trading on Tuesday.
Management expects to report its Interims on December 12.
Carpetright is yet another retailer to warn on profits this year as economic issues including Brexit continue to impact on consumer confidence.
The stock has been on a downward trajectory for the past 24 months as Revenue growth flattens out and Profit margins fluctuate. It now trades at a PE ratio of 9x versus the industry median of 12x and has a Market Cap of £122m.