21 Apr 2015 07:00
21 April 2015
Carpetright plc
Trading Update
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces an update on trading for the 12 weeks ended 18 April 2015 and expectations for the full year.
Highlights
· Group
o Strong trading momentum maintained in final quarter - full year pre-tax profits to be ahead of current market expectations (note 4).
o Sustained recovery in UK like-for-like sales and continued improvement in trading conditions in the Rest of Europe means that Group now expects underlying pre-tax profit for the year ending 2 May 2015 will be around £13m.
· UK
o Like-for-like sales (note 2) in the UK increased by 10.5%. Total sales increased by 9.0%.
o Full year gross profit margin expected to be around 130 basis points below the prior year, around the midpoint of our previously guided range.
o A net two stores closed during the period, leaving 459 trading locations.
· 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 2.4%. Total sales declined by 0.7%. After the impact of currency movements this translates to a 12.6% decrease in total sales.
o Full year gross profit margin expected to be around 250 basis points ahead of the prior year.
o Store numbers remained unchanged following one opening and one closure during the period, leaving 137 trading locations.
Wilf Walsh, Chief Executive, said:
"I am pleased to report that the Group's encouraging trading momentum is being maintained during the final quarter of our financial year.
"In the UK our continued focus on effective promotional activity and the introduction of an interest free credit offer has supported solid like-for-like sales growth of 10.5%. Sales in the Rest of Europe have also continued to improve, building on the progress made in the third quarter.
"In light of this strong finish to the year, we now expect that underlying pre-tax profits for the full year will be above the current range of market expectations at around £13m.
"The Group is well positioned to continue to grow market share and profitability, as we implement our plans to extend the appeal of the Carpetright brand."
The Group will report its preliminary results for the financial year ending 2 May 2015 on Tuesday, 30 June 2015.
Analyst conference call
Carpetright will host a conference call for analysts at 08.00 BST today.
The dial in number is +44 (0) 20 3427 1919 with the passcode '9317331'.
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 current 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.
4. Current range of market expectations for the year ending 2 May 2015 is for Group underlying profit before tax to be £10.0m to £11.0m.
Appendix 1: Group Sales
Current Financial Year | Previous Financial Year | ||||
12 weeks to 18 April 2015 | 25 weeks to 18 April 2015
| 51 weeks to 18 April 2015
| 8 weeks to 22 March 2014 (previously reported) | 52 weeks to 28 April 2014 (previously reported) | |
UK | |||||
Total | 9.0% | 7.6% | 6.3% | (0.8%) | (1.5%) |
Like-for-like | 10.5% | 8.9% | 7.7% | 0.2% | (0.2%) |
Rest of Europe | |||||
Total (in local currency) | (0.7%) | (0.8%) | (1.6%) | (5.3%) | (8.6%) |
Like-for-like (in local currency) | 2.4% | 2.0% | 0.1% | (5.3%) | (8.6%) |
Total (in GBP)
| (12.6%) | (10.0%) | (9.6%) | (8.5%) | (5.4%) |
Group Sales (in GBP)
|
5.4% |
4.9% |
3.8% |
(2.2%) |
(2.2%) |
Appendix 2: Store portfolio
Current Financial Year | Previous Financial Year | |||||||
Store portfolio | 28 April 2015 | 25 January 2015 (previously reported) | 22 March 2014 (previously reported) | Year end 28 April 2014 (previously reported) | ||||
Stores | Sq ft | Stores | Sq ft | Stores | Sq ft | Stores | Sq ft | |
UK | ||||||||
Standalone | 447 | 3,952 | 450 | 3,974 | 457 | 4,047 | 457 | 4,039 |
Concessions | 12 | 20 | 11 | 18 | 15 | 20 | 15 | 27 |
Total | 459 | 3,972 | 461 | 3,992 | 472 | 4,067 | 472 | 4,066 |
Europe | ||||||||
Republic of Ireland | 22 | 162 | 22 | 162 | 21 | 155 | 22 | 162 |
Netherlands | 93 | 1,052 | 93 | 1,070 | 95 | 1,104 | 95 | 1,104 |
Belgium | 22 | 257 | 22 | 257 | 26 | 307 | 25 | 298 |
Total | 137 | 1,472 | 137 | 1,489 | 142 | 1,566 | 142 | 1,564 |
Total Group
|
596 |
5,444 |
598 |
5,481 |
614 |
5,633 |
614 |
5,630 |