United Carpets profits have plunged from £589,000 to £121,000 after a “very challenging” first half, although it recently saw “encouraging signs” in sales.
Like-for-likes increased by 0.1 per cent in the 11 weeks since September, after a 1.8 per cent decrease.
United Carpets believes if these “encouraging signs” are maintained, it would create a better half for the UK’s third biggest flooring retailer and a “reasonable outcome of the year”.
Meanwhile, the retailer recorded an 8.4 per cent uptick in sales for the first half to £10.8 million.
“We worked hard to maintain sales levels but to do so required increased investment in marketing and further support for the franchise network,” United Carpets chief executive Paul Eyre said.
“In addition, we have continued to invest in online activities and to explore future business development opportunities to better prepare the group during a challenging period of changing shopping habits.
“With no immediate signs of respite in the general environment and continuing Brexit uncertainties, we entered the second half cautiously; however, recent trading performance has shown some more encouraging signs which, if sustained, should result in a better second half result and a reasonable outcome for the year.”
Source: Retail Gazette