14 Oct 2014 07:00
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 11 October 2014.
Highlights
· UK
o Like-for-like sales (note 2) in the UK increased by 7.0%. Total sales increased by 5.7%.
o Full year guidance of a decline in gross profit percentage of between 50 and 100 basis points remains unchanged.
o During the period, six stores were opened and ten closed giving a net reduction of four. There are now 463 stores trading, of which 290 have now been modernised.
· Rest of Europe
o In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) decreased 0.5% on year. Total sales declined by 0.8%. After the impact of currency movements this translates to a 7.9% decrease in total sales.
o Full year guidance of an increase in gross profit percentage of around 250 basis points remains unchanged.
· Full year profit expectations are unchanged.
Wilf Walsh, Chief Executive, said:
"I am pleased to report that the Group's trading performance improved year-on-year during the second quarter. In the UK our continued focus on effective promotional activity has delivered solid sales growth throughout the period, with like-for-like growth broadly in line with the level experienced in the first quarter.
"Trading across our Rest of Europe business has continued to improve with a further reduction in the rate of sales decline, arresting the very significant fall seen over the last 30 months, particularly in our Netherlands business. We expect this, along with an improvement in gross profit margin and a reduction in operating costs, will result in our businesses in the Netherlands and Belgium to be profitable for the first half of the financial year compared to the trading loss experienced in the prior year.
"Trading in the year to date remains in line with management's expectations and our view for the year as a whole remains unchanged."
The Group will report its interim results for the first half of its financial year on 9 December 2014.
Analyst conference call
Carpetright will host a conference call for analysts at 08:30 BST today.
The dial in number is +44 (0)20 3003 2666 with the passcode 'Carpetright'.
Thereafter, for further enquiries please contact:
Carpetright plc
Wilf Walsh, Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
Citigate Dewe Rogerson
Kevin Smith / Nick Hayns
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 compared to 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. There have been no significant changes to the Group's financial position during the period.
Appendix 1: Group Sales
Current Financial Year | Previous Financial Year | ||||
11 weeks to 11 Oct 2014 | 13 weeks to 26 July 2014 (previously reported) | 24 weeks to 11 Oct 2013
| 10 weeks to 29 Sept 2013 (previously reported) | 26 weeks to 26 Oct 2013 (previously reported) | |
UK | |||||
- Total | 5.7% | 5.2% | 5.5% | (4.1%) | (2.2%) |
- Like-for-like | 7.0% | 6.1% | 6.6% | (2.5%) | (0.8%) |
Rest of Europe | |||||
- Total (in local currency) | (0.8%) | (3.9%) | (2.5%) | (7.8%) | (8.4%) |
- Like-for-like (in local currency) | (0.5%) | (3.6%) | (2.8%) | (7.6%) | (8.6%) |
- Total (in GBP)
| (7.9%) | (10.1%) | (9.2%) | (1.9%) | (2.4%) |
Group Sales (in GBP)
|
3.6% |
2.5% |
3.0% |
(3.7%) |
(2.2%) |
Appendix 2: Store portfolio
Current Financial Year | Previous Financial Year | |||||||
Store portfolio | 11 Oct 2014 | 26 July 2014 (previously reported) | Interim 26 Oct 2013 (previously reported) | Year end 28 April 2014 (previously reported) | ||||
Stores | Sq ft | Stores | Sq ft | Stores | Sq ft | Stores | Sq ft | |
UK | ||||||||
Standalone | 452 | 3,992 | 456 | 4,028 | 458 | 4,071 | 457 | 4,039 |
Concessions | 11 | 19 | 11 | 19 | 16 | 29 | 15 | 27 |
Total | 463 | 4,011 | 467 | 4,047 | 474 | 4,100 | 472 | 4,066 |
Europe | ||||||||
Republic of Ireland | 22 | 162 | 22 | 162 | 21 | 155 | 22 | 162 |
Netherlands | 94 | 1,091 | 94 | 1,091 | 95 | 1,104 | 95 | 1,104 |
Belgium | 25 | 298 | 25 | 298 | 26 | 307 | 25 | 298 |
Total | 141 | 1,551 | 141 | 1,551 | 142 | 1,566 | 142 | 1,564 |
Total Group
|
604 |
5,562 |
608 |
5,598 |
616 |
5,666
|
614 |
5,630 |