Weather boost for Carpetright
Carpetright has seen sales rise this summer, but at the expense of profit margins.
Its UK business saw 'small but steady improvements' in sales growth during May and June, 'with this trend accelerating significantly during July, assisted by weak comparatives in 2013 when sales were impacted by a prolonged period of hot weather.'
UK like for like sales rose by 6.1% and total sales were up by 5.2% in the 13 weeks to 26 July.
However gross profit margins were cut by 2.6% 'implementing market beating promotions'. This will see full-year margins drop by between 0.5% - 1%.
During the quarter four stores were opened and nine closed. It now has 467 UK stores, of which 283 have now been modernised.
'Sales across our Rest of Europe business units have shown signs of improvement on the recent trend, with a reduction in the rate of decline. Gross profit margin was in line with previous guidance of an increase of around 2.5% for the full year, resulting principally from improved sourcing and operational disciplines. On the back of this activity, it is encouraging to report that our businesses in the Netherlands and Belgium have returned to profit in the first quarter of the financial year,' says the group.