The lower footfall and crumbling consumer confidence warned of by Carpetright’s boss this morning could have wider implications according to one analyst.
Northern Trust Capital Markets have said Kingfisher, which owns DIY-giant B&Q as well as Screwfix, could be hit with the same problems and has sparked a ‘sell trade’ on the stock.
Kingfisher’s share price has dropped 3% this morning and has fallen from 350.20 on Monday to 333.42 today.
Ameet Patel, a senior research analyst, says: ‘We’ve said in the past that Carpetright’s issues have in many ways been company-specific, and hence offer a limited read across.
‘But the degree of the warning today – with management citing significantly lower footfall specifically – could be more relevant for sentiment on Kingfisher shares given their recent run.’