Halfords sales skid, Carpetright floored

TWO more retailers fired off profits warnings yesterday, returning gloom to the high street that was briefly relieved by strong results from Marks & Spencer.

Carpetright, Britain's biggest carpet seller, and car-parts-to-bicycles group Halfords joined the ranks of retailers to jolt the stock market with reduced earnings expectations in recent weeks. Carpetright's shares closed down 5.8 per cent at 632p yesterday, while Halfords fell 5 per cent to 350p.

Halfords now forecasts a 2010-11 pre-tax profit of 124 million to 127m, after guiding to 127m in January when its Christmas sales failed to meet expectations.

The group said yesterday that sales fell 6.8 per cent at stores open more than a year in the 13 weeks to April, its fourth trading quarter.

Carpetright yesterday forecast a profit this year in line with the 17.2m it made in 2008-9, having said in February it expected profit above that level but below the 28.2m it made in 2009-10.