Investors were cheered by a third quarter trading update from Carpetright (LON:CPR) on Tuesday, with shares soaring over 8 percent as the company announced a return to quarterly sales growth.
The company cited an improvement in consumer sentiment and positive currency impact as reasons for the strong results. In a statement, the Carpetright board remained comfortable with the range of market expectations for the Group’s full year profit.
Like-for-like sales for the four weeks to 28 January 2016 rose 6.8 percent, will strong sales in the rest of Europe – including Netherlands, Belgium and the Republic of Ireland – rising 5.4 percent. This translates to an increase of 22.4% in reported currency.
Wilf Walsh, Chief Executive, said:
“We are pleased to announce a return to quarterly like-for-like sales growth in the UK. Our trading performance over the last four weeks, with like-for-like growth of 6.8%, gives us confidence that our turnaround strategy is on track. The refurbished stores with our new brand identity continue to outperform the un-invested estate and we are confident of hitting our target of 150 stores – representing over one third of the UK estate by the financial year-end.
“Like-for-like sales growth in our Rest of Europe business was better than expected as consumer spending continued to recover in the Netherlands.
“Whilst the outlook for the UK consumer remains uncertain, we remain confident in our plan and are comfortable with the current range of market expectations.”
The retailer is now trading from 120 revamped branches – it has 427 altogether in the UK – which achieved sales growth “above comparable stores in the rest of the estate”.
Shares in Carpetright are currently up 8.05 percent at 185.60 (1426GMT).