4 Aug 2010 07:00
Carpetright plc
Interim Management Statement
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces a trading update for the 13 weeks ended 31 July 2010, being the first quarter of its current financial year.
Highlights
·; Group sales declined by 2.5%, with the year on year effect of closing our operations in Poland accounting for 0.6 % of this decline.
·; The Group's store base increased by one to 7042 stores at the period end.
·; UK and Republic of Ireland sales declined by 0.9%, with like-for-like sales3 down 3.4%. A net two stores have been opened, increasing the total to 5882.
·; In constant currency terms, Rest of Europe (The Netherlands and Belgium) total sales decreased by 3.3% with like-for-like sales down 4.2%. After allowing for the movement in exchange rates, this translates to a total sales decline of 6.2%. One store has closed, reducing the total to 116.
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| 13 weeks to 31 July 2010 | 13 weeks to 1 August 2009 (Previously reported) |
| Group Sales | (2.5%) | 7.5% |
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| UK & RoI |
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| - Total | (0.9%) | 6.6% |
| - Like-for-like | (3.4%) | 1.4% |
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| Rest of Europe (continuing businesses) | ||
| - Total (in GBP) | (6.2%) | 11.5% |
| - Total (in constant currency) | (3.3%) | (0.3%) |
| - Like-for-like (in constant currency) | (4.2%) | (3.1%) |
Lord Harris of Peckham, Chairman and Chief Executive, said:
"As announced previously, we had expected consumer demand across Europe to remain subdued as we entered our new financial year, and this view is reflected in the update announced today.
"We remain cautious about the outlook for consumer spending for the balance of the year and as a consequence continue to manage the business by exerting tight control over all costs, capital expenditure, stock and cashflow. Gross margins in the UK are up on previous year largely a result of managing promotional activity.
"Our focus on strong value-led retail brands will enable the Group to capitalise on its market leading positions in its geographical markets when economic conditions improve."
The Group will report its pre-close trading update for the first half of its financial year on 27
October 2010.
Analyst conference call
Lord Harris will host a conference call for analysts at 8:30am
The dial in number is 0845 634 0041 with the passcode 3292598
Thereafter, for further enquiries please contact:
Carpetright plc
Lord Harris of Peckham, Chairman and 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. Excludes Sleepright within Carpetright locations.
3. 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.
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.
| Store portfolio | 31 July 2010 | 1 May 2010 (Previously reported) | ||
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| Sites | Sq Ft | Sites | Sq Ft |
| UK & RoI |
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| Standalone | 536 | 4,672 | 537 | 4,689 |
| Concessions | 52 | 129 | 49 | 119 |
| Total | 588 | 4,801 | 586 | 4,808 |
| Rest of Europe |
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| The Netherlands | 88 | 1,046 | 89 | 1,063 |
| Belgium | 28 | 335 | 28 | 335 |
| Total | 116 | 1,381 | 117 | 1,398 |
| Total Group | 704 | 6,182 | 703 | 6,206 |