Carpetright has warned that profits for the current year will be about £5m lower than forecast as UK sales slipped further in the past quarter.
UK sales fell by 6.8% in the 12 weeks to 22 October and by 3% on a like for like basis. This compares with declines of -2.3% and -0.2% in the previous quarter.

Sales were described as volatile, with shoppers only buying when promotions were increased. Because of the lower prices and higher proportion of lower margin bed sales – now making up 6% of sales – it expects gross profit margins to fall by 4% in the half-year and by 3% for the full year. Profits had been forecast between £11.8m to £16.9m, and the chain says they will be at the ‘lower end of expectations’.

Lord Harris, executive chairman, says it is continuing to cut costs and has been successful in transferring sales to stores near the nine it closed in the period.

‘We are adapting our ranges and promotional activity to continue to offer the best prices to our customers whilst simultaneously working with our suppliers to reduce the level of margin investment. He says the revamped bed offer (Interiors Monthly October 2011) will be an important part of sales and profit recovery. ‘The roll-out of our new laminate offering is progressing and we continue to develop our website to help drive store footfall.’

Like for like European sales, including the Republic of Ireland, fell by 1.7%.

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