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31 Jan 2017 07:00
Carpetright plc
Q3 Trading Update
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces an update on trading for the 13 weeks ended 28 January 2017.
Highlights |
· Return to quarterly sales growth in the UK. |
· Rest of Europe continues to benefit from improved consumer sentiment and positive currency impact. |
· Board remains comfortable with the range of market expectations for the Group's full year profit.(note 1) |
· UK |
o Like-for-like sales for the four weeks to 28 January 2016, up 6.8% |
o Like-for-like sales for the thirteen week period up 1.9% (notes 2, 3) |
o 120 stores now trading under the new brand identity, delivering sales growth above comparable stores in the rest of the estate. On track to achieve 150 stores by the end of April, in line with our accelerated refurbishment plan. |
o One new store opened, one relocated and three closed in the period, giving a net reduction of two stores - leaving a total of 427 trading locations. |
o Two new stores scheduled to open in the next quarter in Leeds (Birstall) and Bath. |
· 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 5.4%. This translates to an increase of 22.4% in reported currency. |
o One store opened during the period, leaving 138 trading locations. |
Wilf Walsh, Chief Executive, said:
"We are pleased to announce a return to quarterly like-for-like sales growth in the UK. Our trading performance over the last four weeks, with like-for-like growth of 6.8%, gives us confidence that our turnaround strategy is on track. The refurbished stores with our new brand identity continue to outperform the un-invested estate and we are confident of hitting our target of 150 stores - representing over one third of the UK estate by the financial year-end.
"Like-for-like sales growth in our Rest of Europe business was better than expected as consumer spending continued to recover in the Netherlands.
"Whilst the outlook for the UK consumer remains uncertain, we remain confident in our plan and are comfortable with the current range of market expectations."
The Group will issue a pre-close update on Tuesday, 25 April 2017 and 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 £15.6m, with a range from £13.9m to £16.5m. |
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 Year | Previous Financial Year | ||||
13 weeks to 28 January 2017 | 39 weeks to 28 January 2017 | 26 weeks to 29 October 2016 | 12 weeks to 23 January 2016 | 38 weeks to 23 January 2016 | |
UK | |||||
- Total | 0.8% | (3.4%) | (6.4%) | (1.3%) | 1.1% |
- Like-for-like | 1.9% | (1.3%) | (2.9%) | 2.4% | 3.3% |
Rest of Europe | |||||
- Total (in local currency) | 5.4% | 2.2% | (1.4%) | 4.4% | 4.0% |
- Like-for-like (in local currency) | 5.2% | 2.4% | (1.5%) | 4.2% | 5.9% |
- Total (in GBP)
| 22.4% | 16.7% | 11.9% | (2.7%) | (2.7%) |
Group Sales (in GBP)
|
3.7% |
(0.7%) |
(3.8%) |
(1.5%) |
0.6% |
Appendix 2: Store portfolio
Current Financial Year | Previous Financial Year | |||||||
Store portfolio | 28 January 2017 | Interim 29 October 2016 | 23 January 2016 | Year end 30 April 2016 | ||||
Stores | Sq ft '000 | Stores | Sq ft '000 | Stores | Sq ft '000 | |||
UK | ||||||||
Standalone | 414 | 3,662 | 415 | 3,672 | 421 | 3,755 | 420 | 3,734 |
Concessions | 13 | 24 | 14 | 26 | 15 | 29 | 15 | 29 |
Total | 427 | 3,686 | 429 | 3,698 | 436 | 3,784 | 435 | 3,763 |
Europe | ||||||||
Republic of Ireland | 21 | 157 | 21 | 157 | 22 | 162 | 21 | 157 |
Netherlands | 94 | 969 | 93 | 950 | 93 | 1,044 | 93 | 985 |
Belgium | 23 | 235 | 23 | 235 | 23 | 258 | 22 | 245 |
Total | 138 | 1,360 | 137 | 1,342 | 138 | 1,464 | 137 | 1,387 |
Total Group
|
565 |
5,046 |
566 |
5,040 |
574 |
5,248 |
572 |
5,150 |
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