Sales Plunge at UK's Carpetright Chain

London, England, Oct. 28, 2008--Carpetright, Britain's biggest floor covering retailer, said it has become more cautious about annual profit forecasts after a difficult October and expected slow sales to continue for at least 18 months.

The firm, which sells vinyl and laminate flooring, carpets and rugs, said it was in advanced talks to buy Sleepright UK Ltd, which currently sells beds in 94 Carpetright stores.

Year-over-year sales in the UK and Ireland fell 12.5 percent in the 25 weeks to Oct. 25, the firm said in a statement.

"As I have said before, these current market conditions are the most difficult I have seen and we are now taking a more cautious view of prospects for the full financial year," Chairman and Chief Executive Philip Harris said.

"We see this continuing for at least another 18 months."

The average forecast for profits in the year to April 2009 is now $64 million, according to a poll of 13 analysts, versus $96 million the year before.

Carpetright said that, despite the plunge in sales, gross profit margins had improved in the UK and Ireland, though it did not say by how much.