Carpetright PLC Trading Update (1820D)
April 25 2017 - 2:00AM
UK Regulatory
TIDMCPR
RNS Number : 1820D
Carpetright PLC
25 April 2017
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 22 April 2017.
Highlights
* Continued growth in the UK, with like-for-like sales
up 1.4% despite tougher market conditions experienced
across the period.
* Rest of Europe continues to benefit from improving
economic confidence and positive currency impact.
* Full year profit expected to be within the current
range of market expectations, albeit towards the
lower end.(note 1)
* UK
o In a more difficult consumer environment, like-for-like sales were
up 1.4% in the twelve week period. (notes 2, 3)
o Further acceleration of store refurbishment programme with 188 stores
trading under the new brand identity by period end, delivering sales
growth above comparable stores in the rest of the estate.
o Three new stores opened in Liverpool, Leeds and Bath.
o Continued progress in reducing fixed operating costs, with two stores
relocated into smaller units and three closures, leaving a total of
427 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 1.4%.
Total sales increased by 1.9%, this translates to an increase of 11.0%
in reported currency.
o One store relocated to a smaller unit, leaving 138 trading locations.
Wilf Walsh, Chief Executive, said:
"In common with other retailers in the home improvement sector
in the UK we have experienced tougher trading conditions over the
last three months. Having said that, we are pleased to report
continued like-for-like sales growth, with an increase of 1.4% in
our fourth quarter.
"Following a further acceleration of the investment programme in
the final quarter we have completed 188 store refurbishments -
surpassing our target of 150 stores, which represents over 40% of
the UK estate. Despite the inevitable disruption factor, the
performance of these refurbished stores has been encouraging giving
us confidence to continue with the programme.
"Trading in the Rest of Europe was in line with our
expectations, underpinned by a continuing recovery in economic
confidence, particularly in the Netherlands.
"Whilst we remain confident in our turnaround plan, the level of
sales growth in our final quarter leads us to expect that full year
profits will be towards the lower end of the current range."
The Group will report its preliminary results for the financial
year ending 29 April 2017 on Tuesday, 27 June 2017.
For further enquiries please contact:
Carpetright plc
Wilf Walsh, Chief Executive
Neil Page, Chief Financial Officer
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. Consensus for the year ending 29 April 2017 is for Group underlying profit before
tax to be GBP15.2m, with a range from GBP13.9m to GBP16.2m.
2. Sales represents amounts payable by customers for goods and services before deducting
VAT and other charges.
3. 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.
4. 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 Previous Financial
Year Year
----------------------------------------------- -------------------------------- ----------------------
12 weeks 25 weeks 51 weeks 12 weeks 52 weeks
to to 22 to 22 to to
22 April April April 23 April 30 April
2017 2017 2017 2016 2016
----------------------------------------------- ---------- --------- --------- ---------- ----------
UK
* Total (0.1%) 0.4% (2.7%) (2.9%) (1.3%)
* Like-for-like 1.4% 1.7% (0.6%) 0.7% 2.8%
Rest of Europe
* Total (in local currency) 1.9% 3.4% 1.7% 2.6% 4.9%
* Like-for-like (in local currency) 1.4% 3.3% 2.2% 1.9% 4.8%
* Total (in GBP) 11.0% 16.4% 16.4% 10.7% (1.2%)
----------------------------------------------- ---------- --------- --------- ---------- ----------
Group Sales (in GBP) 1.6% 2.7% 0.0% (0.9%) (1.3%)
----------------------------------------------- ---------- --------- --------- ---------- ----------
Appendix 2: Store portfolio
Current Previous
Financial Year Financial Year
------------------------------------ ------------------------------------
Store portfolio 22 April 28 January 23 April Year end
2017 2017 2016 30 April
2016
----------------- ----------------- ----------------- -----------------
Stores Sq Stores Sq Stores Sq Stores Sq
ft ft ft ft
'000 '000 '000 '000
------------------ ------- -------- ------- -------- ------- -------- ------- --------
UK
Standalone 414 3,669 414 3,662 419 3,732 420 3,734
Concessions 13 24 13 24 15 29 15 29
Total 427 3,693 427 3,686 434 3,761 435 3,763
------------------ ------- -------- ------- -------- ------- -------- ------- --------
Europe
Republic
of Ireland 21 157 21 157 21 157 21 157
Netherlands 94 963 94 969 93 1,037 93 985
Belgium 23 235 23 235 23 252 22 245
Total 138 1,355 138 1,360 137 1,446 137 1,387
------------------ ------- -------- ------- -------- ------- -------- ------- --------
Total Group 565 5,048 565 5,046 571 5,207 572 5,150
------------------ ------- -------- ------- -------- ------- -------- ------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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