The Courier & Advertiser (Angus and Dundee)
Store closure costs weigh on Carpetright
Retailer Carpetright has seen profits collapse after UK sales dipped and it booked a hefty exceptional charge linked to store closures.
Pre-tax profits plummeted 93% to £900,000 in the year to April 29, down from £12.8 million.
Exceptional costs, linked to closing loss-making stores, totalled £13.5m.
Overall revenue, which includes its European arm, was broadly flat at £457.6m, but UK sales fell 2.6% to £381m.
Chief executive Wilf Walsh said the firm had made “significant strategic progress” in the year.
“While a challenging consumer environment and competitive landscape remain headwinds, we are confident the additional potential in our self-help initiatives will support an increase in market share.”
Like-for-like sales in the UK fell 0.5%, but Carpetright said it bounced back in the second half of the year.
The firm added it has made an “encouraging start” to the new financial year, with UK like-for-like sales up 2% in the seven weeks to June 17.
Mr Walsh added: “Our strategy is on track and the positive response we have received from these initiatives has encouraged us to press ahead with plans to complete the refurbishment of the UK store estate by the end of 2018 and to extend the programme in the rest of Europe.”