Carpetright share price: 3 things we learnt from its annual results
The British retailer and floor specialist has had a difficult 12 months of trading, but its annual results proved that its turnaround strategy is on track with the business returning to positive like-for-like sales growth.
Carpetright saw its share price rally after unveiling its full-year results on Tuesday, with investors pleased by its performance which proved that its turnaround plan is succeeding.
The British retailer and floor specialist managed to bring down its losses and return to like-for-like sales growth, which is great news for a company that was forced to close 80 of stores last year.
Carpetright share price rallies on strong performance
Carpetright saw its share price gain more than 17% to 21p a share on Tuesday morning after it unveiled its full-year results.
However, its gains were short-lived with the stock returning to where it opened on Tuesday, sitting at 17.89p a share as of 12:20 GMT on Wednesday.
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Carpetright's turnaround plan starts strong
The company’s turnaround strategy has already begun to show results, with the business on track to deliver £19 million of savings per annum as part of its company voluntary arrangement (CVA) that involved the closing of dozens of stores after posting major losses.
‘2018/19 was a transitional year for the business as we took tough but necessary action to address our legacy property issues and restructure the UK store estate,’ Carpetright CEO Wilf Walsh said.
’This difficult task was carried out against the backdrop of a challenging trading environment but was essential to put the business back on the path to sustainable profitability.’
A year of two halves for Carpetright
Its CEO labelled the last 12 months of trading as a ‘year of two halves’ for the company with the first six month significantly impacted by the CVA, the second half of the year saw a major improvement, particularly in the final quarter.
That momentum has carried forward into the new financial year, with a return to like-for-like sales growth in the first eight weeks of trading, with UK sales up by 8.5%.
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