Carpetright Stock Falls as Profits Plunge

London, England, Dec. 16, 2008--Carpetright shares fell as much as 21 percent after Britain's biggest floor covering retailer says its full-year profit will be below expectations.

The company reported a 67 percent fall in first-half profit and cut its interim dividend.

Seymour Pierce analyst Kate Heseltine repeats the brokerage's "sell" rating on Carpetright stock and says its forecasts are under review.

"We remain concerned about the medium-term outlook for floor coverings particularly in the first quarter 2009, while the stock in our view is still too highly rated at 11.2 times 2008/9 earnings rising to 14.0 times in the following year and valuing it at a significant premium to the sector."

The company said it doesn't see a turnaround until 2010.