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Carpetright reaps rewards of ‘self-help initiatives’

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Homeowners facing a chilly spring have splashed out on carpets, according to latest results from recovering retailer Carpetright.

But the group believes its string of self-help measures were more important in helping improve its core trading performance in the UK.

The firm, which has issued a series of warnings as profits slumped to £4 million last year from a high of £62m five years ago, said like-for-like sales at home increased by 5.6% in the quarter to April 20.

The performance, tempered by continuing trouble in European markets, was said to be “in line” with expectations for the group.

At constant currency, total sales in Belgium, the Netherlands and Republic of Ireland fell back 10.2%, with the weaker Dutch market dragging down “solid” returns elsewhere.

Chief executive Darren Shapland said: “Excluding the expected contraction in sales from the wholesale business, our core UK retail business would have reported like-for-like sales growth of 6.7% for the period.

“Whilst the recent cold spring weather has been positive to our sales, we believe this performance reflects the continued success of our programme of self-help initiatives.

“These include the ongoing programme of store refurbishments, the introduction of our improved laminate range to more stores, the development of our bed business and the increased use of digital media.

“This has been achieved in a market which remains challenging, with consumers very focused on getting a good deal, necessitating a highly visible and compelling promotional programme.”

A programme of store refurbishments and modernisations is under way, with around two-fifths of the 477 UK store estate having been completed.

Mr Shapland also said gross margins for the year were as expected, and continued to improve on last year, while a string of cost-cutting measures had supported profitability in Europe.

Shares closed the day up 7p at 637p.