Hobson: Carpetright Was a Close Call

THE WEEK: Morningstar columnist Rodney Hobson harks back to 2014 when he was tempted to buy shares in Carpetright, whose shares plunged again this week on another profit warning

Rodney Hobson 2 March, 2018 | 3:06PM

Carpetright Shares Plunge

Towards the end of 2014 I was sorely tempted to buy Carpetright (CPR) shares. Britons were putting the financial crisis behind them, employment was increasing and the housing market, particularly in London, was quite buoyant. Carpetright seemed to be on a roll that was reflected in the rising share price.

It was only my antipathy for retail stocks that stopped me. Carpetright is particularly vulnerable to changes in consumer confidence and any squeeze on wages, since each purchase can run to hundreds if not thousands of pounds. Every customer who decides not to splash out has a big impact while an awful lot of storage space is required whether sales are made or not.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Carpetright PLC  
Merlin Entertainments PLC  

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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