13 Oct 2011

Carpet-maker's first-quarter sales drop by a fifth

10:30 am on 13 October 2011

Cavalier Corporation says first-quarter sales have dropped by a fifth, as higher carpet prices and Europe's debt woes deter customers from buying.

The listed carpet-maker says a large number of major commercial projects in Australia and New Zealand have been put off because of worries about the financial crisis in Europe.

Managing director Wayne Chung says higher wool costs are also flowing through to carpet prices, and that's denting sales in the already subdued retail environment.