4th Oct 2013 07:23
LONDON (Alliance News) - Carpetright PLC Friday said that it expects its full-year results to be significantly below expectations, due to a softer UK market and losses at its Dutch business.
The firm also announced that Chief Executive Officer Darren Shapland will step down. It said that Chairman Philip Harris will become a full-time executive chairman, and Graham Harris, currently Carpetright's trading director, will join the board and become Chief Operating Officer.
Carpetright gave no reason for the management change.
In a trading update for the 10 weeks to September 29, the floor-covering retailer said that group sales for the 10-week period fell 3.7%. It said that UK like-for-like sales were down 2.5%, and total UK sales were down 4.1%.
Carpetright said that in local currency terms, like-for-like sales in the rest of Europe, which comprises the Netherlands, Belgium and the Republic of Ireland, declined 7.6%. It said that total sales dropped 7.8% in the 10-week period.
The carpet retailer said that its Dutch business is expected to have made a loss in the first half of the year, and as a result, further operational actions have been taken to mitigate the loss and maintain a positive cash contribution.
Carpetright said that operations in Belgium and the Republic of Ireland are in line with its expectations.
"Whilst we have improved the margin and maintained a tight control on costs, the shortfall in sales in this trading period is lowering our previous expectations," said Executive Chairman Philip Harris in a statement.
Carpetright said it expects to report its interim results on December 10.
Shares were down 11% after the market open Friday, at 603.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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