Carpetright PLC Trading Update (3291C)
January 19 2018 - 2:00AM
UK Regulatory
TIDMCPR
RNS Number : 3291C
Carpetright PLC
19 January 2018
Carpetright plc
Trading Update
Carpetright plc, Europe's leading specialist carpet and floor
coverings retailer, today announces an update on trading for the 11
weeks ended 13 January 2018.
Key Points
-- Trading in the important post-Christmas period
has been significantly behind expectations
-- Total Group sales down 2.3%
-- Sharp deterioration in UK trade has had a
significant impact on profitability and our
outlook for the reminder of the year
-- Revised full year profit guidance in the range
of GBP2.0m to GBP6.0m
-- UK
o UK trading impacted by lower customer footfall,
with transaction numbers down significantly year-on-year
o Like-for-like sales decline of 3.6% in the 11 weeks,
with a decrease of 1.4% within the flooring category,
and a further material decrease in bed sales (notes
2, 3)
o Core flooring like-for-like sales decline of 7.1%
since Christmas
o Continuing to perform well against new competitors,
with those stores having traded against new competition
for more than 12 months performing ahead of the
remaining estate
o Gross profit margin guidance unchanged - a decline
of between 40-80bps
o Four stores were opened and 14 closed in the year
to date, giving a net reduction of ten, leaving
416 trading locations
-- Rest of Europe (Netherlands, Belgium and the Republic
of Ireland)
o In local currency terms, like-for-like sales increased
by 4.3%
o Gross profit margin guidance unchanged - a decline
of 400-600bps
o Two stores were opened and four closed in the year
to date, giving a net reduction of two, leaving
136 trading locations
Wilf Walsh, Chief Executive, said:
"Despite a positive start to our third quarter, we have seen a
significant deterioration in UK trading during the important
post-Christmas trading period. While average transaction values
were up year on year, the number of customer transactions since
Christmas was sharply down, which we believe is indicative of
reduced consumer confidence.
"Our response to the threat of new competition continues to be
effective, with those stores that have traded against new local
competition for more than 12 months performing ahead of the rest of
our estate.
"Sales in our Rest of Europe business have also been volatile
but we continue to deliver like-for-like sales growth, primarily
reflecting the introduction of lower margin service income.
"The severity of the decline in footfall over this key trading
period and our more cautious view of the outlook for the balance of
the year leads to a significant reduction in our full year
expectations.
"Against this background of a further deterioration in market
conditions, we remain committed to driving through the improvements
that are essential to the long term repositioning of the
business."
The Group will issue a pre-close update on Tuesday, 24 April
2018 and will report its preliminary results for the financial year
ending 28 April 2018 on Tuesday, 26 June 2018.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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 28 April 2018 is for Group
underlying profit before tax to be GBP14.1m, with a range from
GBP13.0m to GBP15.6m.
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.
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
-------------------------- ---------------------------------- ---------------------
11 weeks 37 weeks 26 weeks 13 weeks 39 weeks
to 13 to 13 to 28 to to
Jan 2018 Jan 2018 Oct 2017 28 Jan 28 Jan
2017 2017
-------------------------- ---------- ---------- ---------- ---------- ---------
UK
Total (4.5%) (1.8%) (0.8%) 0.8% (3.4%)
Like-for-like (3.6%) (0.6%) 0.7% 1.9% (1.3%)
Rest of Europe
Total (in local
currency) 5.1% 6.4% 11.4% 5.4% 2.2%
Like-for-like
(in local currency) 4.3% 5.6% 6.5% 5.2% 2.4%
Total (in GBP) 9.6% 12.2% 20.1% 22.4% 16.7%
-------------------------- ---------- ---------- ---------- ---------- ---------
Group Sales (in
GBP) (2.3%) 0.4% 2.6% 3.7% (0.7%)
-------------------------- ---------- ---------- ---------- ---------- ---------
Appendix 2: Store portfolio
Current Previous
Financial Year Financial Year
------------------------------------ ------------------------------------
Store portfolio 13 Jan Interim 28 Jan Year end
2018 28 Oct 2017 29 Apr
2017 2017
----------------- ----------------- ----------------- -----------------
Stores Sq Stores Sq Stores Sq Stores Sq
ft ft ft ft
'000 '000 '000 '000
------------------ ------- -------- ------- -------- ------- -------- ------- --------
UK
Standalone 409 3,612 410 3,661 414 3,662 414 3,669
Concessions 7 10 8 12 13 24 12 22
Total 416 3,622 418 3,633 427 3,686 426 3,691
------------------ ------- -------- ------- -------- ------- -------- ------- --------
Rest of Europe
Republic
of Ireland 21 157 21 157 21 157 21 157
Netherlands 92 960 92 957 94 969 94 975
Belgium 23 228 23 228 23 235 23 228
Total 136 1,344 136 1,342 138 1,360 138 1,360
------------------ ------- -------- ------- -------- ------- -------- ------- --------
Total Group 552 4,966 554 4,974 565 5,046 564 5,051
------------------ ------- -------- ------- -------- ------- -------- ------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
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