Carpetright Gives Profit Warning
Flooring specialist company Carpetright has become the latest retailer in the United Kingdom to issue a profit warning. Carpetright deals with flooring options including carpets, rugs, and other options such as vinyl and laminate, ideal for replacing floors perhaps in need of wood floor repairs.
The company has issued a statement saying that while profits are expected to be not too different to those achieved two years ago in 2009, they will fall short of those accumulated last year. Trading conditions across the United Kingdom are becoming increasingly tough, and while Carpetright warned investors that there would be a reduction in profits back in February, at that point they did not believe that reduction would turn out to be as significant as it has actually proven to be. “Since the date of that statement, difficult trading conditions have persisted in the UK and Republic of Ireland, with fragile consumer confidence producing a weak floor coverings market,” the statement states, which was issued yesterday.
Carpetright is one of a number of retailers across the United Kingdom, which has been forced to issue profit warnings since the beginning of the year, joining the likes of Dixons Retail, PC World and card and gift specialist company Clinton Cards, among others. One of the most high profile companies to have issued such a warning is HMV Entertainment, which has released two such warnings just in the last two months and is reportedly considering selling the bookselling arm of the company, Waterstone’s.