Carpetright investors take fright at profit fall

Carpetright saw its share price floored yesterday after its alerted investors over profits following a sharp drop in sales during the period surrounding Christmas.

The firm, which has some 550 stores worldwide, reported that like-for-like sales had fallen 3.6 per cent in the 11 weeks ending 13 January.

Total group sales were 2.3 per cent lower, with the company pinning the blame on “reduced consumer confi- dence”. In response, it has slashed its profit outlook from between £13.8 million and £16.7m, to between £2m and £6m.

Neil Wilson, market analyst at ETX Capital, said: “Again it’s the same old story as with other brands that have failed to adapt to changing consumer trends – lower footfall has left transaction numbers down significantly from last year.

“We must also consider weaker consumer sentiment for big ticket items … as well as tougher competition from a more diverse marketplace.”