But founder Lord Harris warned that this year would be “one of the most difficult” in his career.
The company, which has a store at Great Northern Retail Park in Huddersfield, said like-for-like sales in the UK and Ireland fell by 2.7% in the year to May 3 as the consumer spending slowdown and housing market woes hit trading.
Chairman and chief executive Lord Harris of Peckham said the firm produced a “solid” result given the market difficulties. Underlying pre-tax profits of £62.1m were slightly ahead of market expectations.
But he added: “There is no doubt that the UK floor coverings market became more difficult, in line with other housing and DIY-related sectors.
“This challenge has remained and I believe that the next year will be one of the most difficult I have seen.”
Carpetright, which is celebrating its 20th anniversary, said the fall in sales slowed during the second half of the year – down by 1.8% against a 3.4% fall in the first six months.
Its recent acquisitions of Storeys and Carpetworld contributed £30.1m to the region’s £452.7m annual revenues, up 8.3%.
Profit margins increased by 0.9% on the previous year as Carpetright improved its stock management, distribution network and supplier rebates.
The company said it was increasing market share as smaller rivals went out of business – as the housing market downturn and lack of consumer confidence led to a decline in demand for carpets and flooring.
Carpetright, which is teaming up with others in the industry for a PR and marketing bvlitz, said its European business now accounted for 13% of total revenue.