Carpetright (LON:CPR) shares plunged nearly 8 percent at market open on Tuesday, after the company hinted at tougher trading conditions having an impact on preliminary results.
The carpet and home furnishings firm confirmed continued growth in the UK, with like-for-like sales up 1.4 percent despite ‘tougher market conditions’. In a trading update for the 12 weeks to the 22nd April, Carpetright said full year profit was still expected to be within the current range of market expectations, ‘albeit towards the lower end’.
Like for like sales in Europe were also up 1.4 percent in April, with total sales increasing by 1.9 percent translating to an increase of 11 percent in reported currency.
Wilf Walsh, Carpetright’s Chief Executive, said the UK had “experienced tougher trading conditions over the last three months”.
However, he continued: “Following a further acceleration of the investment programme in the final quarter we have completed 188 store refurbishments – surpassing our target of 150 stores, which represents over 40 percent of the UK estate. Despite the inevitable disruption factor, the performance of these refurbished stores has been encouraging giving us confidence to continue with the programme.
“Whilst we remain confident in our turnaround plan, the level of sales growth in our final quarter leads us to expect that full year profits will be towards the lower end of the current range.”
Carpetright shares were down around 8 percent at market open but have rapidly gained ground, currently down 2.73 percent at 238.30 (0903GMT).