24 Jul 2012 07:00
24 July 2012
Carpetright plc
Interim Management Statement
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces a trading update for the 12 weeks ended 21 July 2012.
Highlights
·; UK
o Like-for-like sales2 in the UK increased by 1.7%, continuing the positive trend experienced in the second half of the last financial year. Total sales in the UK declined by 2.1% due to the reduction in the number of stores year on year.
o Store base decreased by four during the period to 486, of which 63 have now been refurbished.
·; Rest of Europe
o In local currency terms, total sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) decreased by 5.2% with like-for-like sales down 6.3%. After allowing for the movement in exchange rates, this translates to a total sales decline in Europe of 13.6%.
o Store base increased by one to 143 and commenced a trial selling beds in one store, in the Netherlands.
Darren Shapland, Chief Executive, said:
"We continue to be encouraged by the like-for-like sales growth within the UK business. Excluding the expected decrease in sales from the wholesale business3, our core UK retail business would have reported like-for-like sales growth of 5.3%. This reflects, in part, the success of self-help actions such as the development of our bed proposition, extension of our laminate range to more stores and the impact of our store refurbishment programme. We also recognise that, this period does include some benefit from the unusually wet weather, which has produced consistently positive customer footfall to our stores. The gross margin for the period continued to improve in line with our previously announced expectations and we continue to project the full year to be in the range of 200-250 basis points above the prior year.
"The key driver in the performance of the Rest of Europe has been the deterioration of consumer confidence producing a weak and volatile floor coverings market in the Netherlands. The Republic of Ireland and Belgium continued to deliver sales growth.
"The result for this first quarter is in line with management's expectations and at this early stage, our expectations for the year as a whole remain unchanged."
The Group will report its pre-close trading update for the first half of its financial year on 23 October 2012.
Analyst conference call
Darren Shapland will host a conference call for analysts at 08:30 BST today.
The dial in number is (0)20 3003 2666 with the passcode 5288042
Thereafter, for further enquiries please contact:
Carpetright plc
Darren Shapland, Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
Citigate Dewe Rogerson
Kevin Smith / Lindsay Noton
Tel: 020 7638 9571
A copy of this trading statement will be available on our website www.carpetright.plc.uk today from 7.00am
Notes
1. All sales figures are quoted after deducting VAT.
2. Like-for-like sales calculated as this year's net sales divided by last year's net 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. Sales from insurance and house building contracts are supplied through the stores and included in their figures.
3. Wholesale business included sales through insurance replacement and house builders
4. There have been no significant changes to the Group's financial position during the period.
5. Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements. We undertake no obligation to update any forward looking statements whether as a result of new information, future events or otherwise.
Appendix 1: Group sales
| 12 weeks to 24 July 2012 | 12 weeks to 23 July 2011 (previously reported) | |
Group Sales | (4.3%) | (1.5%) | |
UK | |||
- Total | (2.1%) | (2.3%) | |
- Like-for-like | 1.7% | (0.2%) | |
Rest of Europe | |||
- Total (in GBP) | (13.6%) | 1.7% | |
- Total (in local currency) | (5.2%) | (2.3%) | |
- Like-for-like (in local currency) | (6.3%) | (1.7%) | |
Appendix 2: Store portfolio
Store portfolio | 24 July 2012
| 23 July 2011 (Previously reported) | 28 April 2012 (Previously reported) | |||
Stores | Sq Ft | Stores | Sq Ft | Stores | Sq Ft | |
UK | ||||||
Standalone | 470 | 4,211 | 489 | 4,342 | 474 | 4,241 |
Concessions | 16 | 29 | 25 | 49 | 16 | 29 |
Total | 486 | 4,240 | 514 | 4,391 | 490 | 4,270 |
Europe | ||||||
Republic of Ireland | 20 | 147 | 20 | 147 | 20 | 147 |
Netherlands | 95 | 1,104 | 92 | 1,078 | 94 | 1,094 |
Belgium | 28 | 329 | 28 | 329 | 28 | 329 |
Total | 143 | 1,580 | 140 | 1,553 | 142 | 1,570 |
Total Group | 629 | 5,810 | 654 | 5,944 | 632 | 5,840 |