British carpet and floor covering retailer Carpetright Plc (LON:CPR) said it expects full-year profits to be below last year and below market expectations, citing lower third quarter sales due to adverse weather conditions and fragile consumer confidence.
Group sales for the 13 weeks ended Jan. 29 fell 6.4 percent due to tough trading conditions in the UK and Ireland, where sales fell 5.0 percent, with like-for-like sales down 7.7 percent.
The tough trading conditions in the UK and Republic of Ireland have continued into the third quarter of our financial year, with adverse weather conditions and fragile consumer confidence producing a difficult floor coverings market, said chief executive Lord Harris of Peckham.
Although we have achieved an increase in sales year on year since Christmas, this has not been at the level expected. This causes us to remain cautious about the outlook for the remainder of the financial year, he said.
The group said on Tuesday there have been no significant changes to its financial position during the quarter and the business remains well placed to capitalise on opportunities when economic conditions improve.
Shares of Carpetright ended Tuesday's regular trading at 707.50 pence on the London Stock Exchange.