Halfords and Carpetright issue profit warnings

| April 7, 2011 | 0 Comments

Retailers Halfords and Carpetright have both issued profit warnings, as UK consumers are squeezed in the face of rising inflation and Government spending cuts.

Car parts and bicycle retailer Halfords lowered its 2011 estimate for profits before tax to £124 million-£127 million, down from £127 million announced earlier this year.

The retailer blamed the “tougher consumer environment” as well as “product cost pressures” for missing profit expectations.

David Wild, Halfords chief executive, said: “We believe the environment will remain difficult for customers.”

In the meantime, Carpetright said conditions were tough and consumer confidence remains fragile and said underlying pre-tax profits were expected to have dropped back to 2009 levels.

The floor coverings firm issued its second profits warning of the year sending its share plummeting 7%.

The profit warnings come just a day after British retailing giant Marks and Spencer said it faces a “challenging trading environment”.

The 127-year-old retailer which sells clothes, food and homewares, said the coming year will be challenging due to rising inflation and the Government’s spending cuts which will put pressure on consumers.

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