Bad news for high street carpet retailer
Bad news has hit high street flooring suppliers Carpetright as the firm has dropped in to the red in the approach to the festive season.
The huge drop in sales also means that the company has had to stop dividend payouts for shareholders to try and limit the damage caused.
This is the first time in Carpetright’s eighteen year history on the stock market that profits have slumped to leave the firm in the red.
Sales at the carpet supplier have fallen across the company’s 643 stores for the worst half-year performance ever recorded by the company.
This latest news will not come as a huge surprise to those in the industry as Carpetright has issued numerous profit warnings over the last 12 months.
Like many interiors firms the company is likely to have been hugely affected by the effect that the current difficult economic climate has on the housing market.
There was some good news though as laminate floors continued to sell well as customers looked for newly popular value flooring to save money.
Also the company are not expected to announce large scale store closures and it is hoped that Carpetright can continue to weather the storm.
