LONDON (Alliance News) - Carpetright PLC Tuesday said it expects to report a pretax profit for the financial year that's about to end above market expectations, as a sustained recovery in UK sales and a continued improvement in the rest of its European business is driving strong trading in the fourth quarter of the year.
The carpet and floor coverings retailer said it expects its pretax profit excluding exceptional items and any related tax to be about GBP13 million in the year that ends May 2, which would be almost triple the GBP4.6 million it reported in its last financial year.
It said like-for-like UK sales, which comprise sales from stores open at least 12 months at the start of the financial year and excluding any that have been shut, were up 10.5% in the 12 weeks to April 18, while total UK sales were up 9.0% as it closed two stores, leaving it trading from 459 locations in the country.
It's UK full-year gross profit margin is expected to be down about 130 basis points on the year, about the mid-point of the range it previously gave.
"In the UK our continued focus on effective promotional activity and the introduction of an interest free credit offer has supported solid like-for-like sales growth of 10.5%," Chief Executive Wilf Walsh said.
In the rest of Europe, Carpetright's like-for-like sales were up 2.4% on the year in the 12 weeks in local currency terms, although total sales fell 0.7% in local currency terms and were down by 12.6% when translated into sterling due to the weakening of the euro.
Still, the company expects full-year gross margin in these operations, which comprise 137 stores in the Netherlands, Belgium and the Republic of Ireland, to be up about 250 basis points on the year.
Carpetright will put out its full-year results on June 30.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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