XTB reacts to Carpetright interim results

AFTER Carpetright released its interim results, Joshua Raymond, market analyst at XTB.com, said, ‘It’s a disappointing half-year results for the retailer, with a 3.8% fall in revenue with a 42% drop in profit before tax thanks in part to substantial headwinds of the weaker pound, softer market confidence and poor performing stores.

‘The crux of this loss is focused in the UK, where operating profit dropped a whopping 48.9% and it’s in the UK where Carpetright generates 84% of its total revenue.

‘Shareholders will be splitting blood that not only has the firm reported a 6.4% drop in revenue, they have also seen a 5.3% jump in costs, meaning the executive team has been too slow to react to the changing market circumstances.

‘The only positive from this report is the upswing in like for like sales of +2.6% in the six weeks to 10 December, which paints a different story to the previous six months.

‘However, we’re yet to learn how much of this sales improvement was driven by price cuts and sales offers, which could ultimately hurt margins once more. I treat this improvement with a hefty pinch of salt.’