Carpetright profits hit by challenging conditions

| June 28, 2011 | 0 Comments

Carpetright has today added to the doom and gloom surrounding the retail sector by announcing a 70% fall in annual profits.

The company blamed “very challenging trading conditions” after profits for the year to 30 April came in at £6.6 million – down from £22.3 million a year ago.

Meanwhile, annual revenues were down 6% at £486.8 million.

The figures come on the same day chocolate retailer Thorntons announced plans to close 120 stores over the next three years.

The firm also said, as part of a strategic review of the business, a further 60 shops could close as it blamed challenging trading conditions for the latest measures.

Furthermore, yesterday it was revealed fashion retailer Jane Norman had entered administration, while last week, furniture chain Habitat said all but three of its stores would be put into administration.

Returning to Carpetright, the company said it was reviewing the number of its stores after already reducing its number of outlets by 27 to 559.

Carpetright chairman and chief executive Lord Harris comments: “The group faced very challenging trading conditions in the year under review, with fragile consumer confidence producing a weak floor coverings market, leading to a reduction in sales volumes and profitability.”

Lord Harris believes there will be “no respite” from the challenging conditions over the next 12 months.

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