Carpetright reports improved sales as housing market revives

Carpetright reports improved sales as housing market revives

	Published : Wed, 01 Feb 2006 09:25 By : James Rowe Print this Story

LONDON: Britain's largest floor coverings retailer Carpetright Plc. has reported improved sales for its third quarter as housing activity saw a modest revival in the country. The company said its gross margin too had improved as per expectations, reversing the first half trend.

Sales at the company's U.K. and Ireland business rose by 0.6 per cent, with like-for-like sales (stripping the impact of new and closed space) growing 0.2 per cent during the quarter. The first half saw a 7.1 per cent fall in like-for-like sales.

Carpetright has signed a deal with House of Fraser Plc. to open concessions in 18 of the latter's stores. The company, which has roughly 20 per cent share in the fragmented U.K. market, had opened a total of 14 new stores in the third quarter, taking the total stores to 429, including 27 concessions.

The company said as a measure of cost cutting, it is shifting to cheaper premises and opening smaller stores.

Its sales from net new space increased 2.1 per cent, but this was offset by the impact of the closure of the Allders concessions in February and March 2005 after the department store chain went into administration.

The company said sales of its continental European business grew 9.2 per cent in local currency. It has 93 stores in Belgium and the Netherlands.

Philip Harris, the company's founder, chairman and chief executive, said it plans to open more stores in the U.K. and Ireland and that it is well placed to grow sales and market share in 2006. It intends to add 15 stores in the U.K. and Ireland stores, three in the Netherlands, one in Belgium and two in Poland.

The company's shares rose by 20 pence to close at 1,102 but opened to weaker trading this morning.