Carpetright PLC Trading Update (2798W)
April 26 2016 - 2:00AM
UK Regulatory
TIDMCPR
RNS Number : 2798W
Carpetright PLC
26 April 2016
26 April 2016
Carpetright plc
Trading Update
Carpetright plc, Europe's leading specialist carpet and floor
coverings retailer, today announces an update on trading for the 12
weeks ended 23 April 2016.
Highlights
-- The Group's full year profit expectations are unchanged. (note 4)
-- UK
o Like-for-like sales up 0.7% in the twelve week period and up 2.9%
for the financial year to date. (notes 1, 2, 3)
o Full year guidance of a decline in gross margin revised to between
80 and 100 basis points, from 100 - 150 basis points previously.
o Two stores closed during the period, making a total of 35 store closures
and nine openings during the year, leaving 434 trading locations.
-- Rest of Europe
o In local currency terms, like-for-like sales in the Rest of Europe
(Netherlands, Belgium and the Republic of Ireland) increased by 1.9%
for the twelve week period, up 4.6% for the financial year to date.
o One store opened and two closed during the period, making a total
of eight store openings and eight closures during the year, leaving
137 trading locations.
Wilf Walsh, Chief Executive, said:
"The UK business continued to make progress in the final
quarter, against strong comparatives in the prior year and in a
market which was increasingly competitive. Against this background,
we have delivered two year compound like-for-like sales growth in
excess of 10% and, having rebalanced our promotional activity, are
pleased to report revised gross margin guidance for the full year
of a decline of around 80-100 basis points, an improvement on the
previous range.
Our plan to revitalise the Carpetright brand remains on track.
Results from the trial of our new retail concept have been
encouraging with the trial stores outperforming comparable stores
in the estate. We have now completed our analysis of the customer
data from the trial, enabling us to finalise the features of a new
store format and brand identity which we will shortly begin to
roll-out across our UK business in a phased refurbishment
programme. In tandem, we continue to make progress with our efforts
to reduce store occupancy costs, with a number of further property
deals in the pipeline. We look forward to providing shareholders
with a comprehensive update on our strategic plan at the time of
our results announcement at the end of June.
Trading in the Rest of Europe continues in line with our
expectations."
The Group will report its preliminary results for the financial
year ending 30 April 2016 on Tuesday, 28 June 2016.
For further enquiries please contact:
Carpetright plc
Wilf Walsh, Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
Citigate Dewe Rogerson
Kevin Smith / Nick Hayns
Tel: 020 7638 9571
Further information on Carpetright plc, including an alert
service for latest company news, can be found at
http://www.carpetright.plc.uk/
A copy of this trading statement will be available on our
website from 7.00am today.
Notes
1. Sales represents amounts payable by customers for goods and services
before deducting VAT and other charges.
2. Like-for-like sales calculated as this year's sales compared
to last year's sales for all stores that are at least 12 months
old at the beginning of our financial year. Stores closed during
the year are excluded from both years. No account is taken of
changes to store size or introduction of third party concessions.
3. For the UK and Republic of Ireland the current financial year
(2016) is a 52 week year, ending 30 April 2016. The previous
financial year (2015) was a 53 week year, ended 2 May 2015. In
order to provide meaningful year on year trading information,
current year financial trading period in this announcement relates
to weeks 1 to 25 of 2016, compared to weeks 2 to 26 of 2015.
4. Consensus for the year ending 30 April 2016 is for Group underlying
profit before tax to be GBP17.3m.
5. There have been no significant changes to the Group's financial
position during the period.
Notes to Editors
Carpetright plc is Europe's leading specialist floor coverings
and beds retailer. Since the first store was opened in 1988 the
business has developed both organically and through acquisition
within the UK and other European countries. The Group is organised
into two geographical regions, the UK and the Rest of Europe
(comprising The Netherlands, Belgium and the Republic of
Ireland).
Appendix 1: Group Sales
Current Financial Year Previous Financial
Year
----------------------------------------------- ---------------------------------- ----------------------
12 weeks 25 weeks 51 weeks 12 weeks Pro forma
to to to to 52 weeks
23 April 23 April 23 April 18 April to
2016 2016 2016 2015 25 April
2015
----------------------------------------------- ---------- ---------- ---------- ---------- ----------
UK
* Total (2.9%) (1.6%) 0.3% 9.0% 5.4%
* Like-for-like 0.7% 2.0% 2.9% 10.5% 7.3%
Rest of Europe
* Total (in local currency) 2.6% 2.4% 2.8% (0.7%) Level
* Like-for-like (in local currency) 1.9% 2.4% 4.6% 2.4% 0.3%
* Total (in GBP) 10.7% 3.2% (1.9%) (12.6%) (7.4%)
----------------------------------------------- ---------- ---------- ---------- ---------- ----------
Group Sales (in GBP) (0.9%) (0.9%) level 5.4% 3.3%
----------------------------------------------- ---------- ---------- ---------- ---------- ----------
Appendix 2: Store portfolio
Current Financial Previous Financial
Year Year
------------------------------------ ------------------------------------
Store portfolio 23 April 23 January 18 April Year end
2016 2016 2015 2 May 2015
----------------- ----------------- ----------------- -----------------
Stores Sq Stores Sq Stores Sq Stores Sq
ft ft ft ft
'000 '000 '000 '000
-------------------------- ------- -------- ------- -------- ------- -------- ------- --------
UK
Standalone 419 3,732 421 3,755 447 3,952 448 3,963
Concessions 15 29 15 29 12 20 12 16
Total 434 3,761 436 3,784 459 3,972 460 3,979
-------------------------- ------- -------- ------- -------- ------- -------- ------- --------
Europe
Republic of Ireland 21 157 22 162 22 162 22 162
Netherlands 93 1,037 93 1,044 93 1,052 95 1,046
Belgium 23 252 23 258 22 257 22 257
Total 137 1,446 138 1,464 137 1,472 137 1,465
-------------------------- ------- -------- ------- -------- ------- -------- ------- --------
Total Group 571 5,207 574 5,248 596 5,444 597 5,444
-------------------------- ------- -------- ------- -------- ------- -------- ------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
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