27 Jan 2015 07:01
27 January 2015
Carpetright plc
Trading Update
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces an update on trading for the 13 weeks ended 24 January 2015.
Highlights
· UK
o Like-for-like sales (note 2) in the UK increased by 7.5%. Total sales increased by 6.6%.
o Full year guidance of a decline in gross profit percentage of between 100 and 150 basis points remains unchanged.
o Two stores were closed during the period, leaving 461 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 1.7%. Total sales declined by 0.8%. After the impact of currency movements this translates to a 6.0% decrease in total sales.
o Full year guidance of an increase in gross profit percentage of around 250 basis points remains unchanged.
o Two stores closed during the period, leaving 137 trading locations.
• Full year 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 third quarter.
"In the UK our continued focus on effective promotional activity and the introduction of an interest free credit offer from Boxing Day has delivered a like-for-like performance slightly ahead of the level experienced in the first half. Sales in our Rest of Europe business have also continued to improve.
"Trading remains in line with management's expectations and our view for the year as a whole remains unchanged."
The Group will issue a pre-close update on Tuesday, 28 April 2015 and 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 08.30 GMT 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 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 £9.4m to £11.0m.
Appendix 1: Group Sales
Current Financial Year | Previous Financial Year | ||||
13 weeks to 24 January 2015 | 39 weeks to 24 January 2015
| 26 weeks to 25 October 2014 (previously reported) | 13 weeks to 25 January 2014 (previously reported) | 39 weeks to 25 January 2014 (previously reported) | |
UK | |||||
- Total | 6.6% | 5.5% | 5.0% | 0.6% | (1.2%) |
- Like-for-like | 7.5% | 6.8% | 6.5% | 1.9% | 0.2% |
Rest of Europe | |||||
- Total (in local currency) | (0.8%) | (1.8%) | (3.7%) | (7.5%) | (8.6%) |
- Like-for-like (in local currency) | 1.7% | (0.7%) | (3.3%) | (7.7%) | (8.5%) |
- Total (in GBP) | (6.0%) | (7.8%) | (9.4%) | (6.3%) | (3.8%) |
Group Sales (in GBP)
|
4.7% |
3.4% |
2.6% |
(0.5%) |
(1.7%) |
Appendix 2: Store portfolio
Current Financial Year | Previous Financial Year | |||||||
Store portfolio | 24 January 2015 | 25 October 2014 (previously reported) | 25 January 2014 (previously reported) | Year end 28 April 2014 (previously reported) | ||||
Stores | Sq ft | Stores | Sq ft | Stores | Sq ft | Stores | Sq ft | |
UK | ||||||||
Standalone | 450 | 3,974 | 452 | 3,993 | 457 | 4045 | 457 | 4,039 |
Concessions | 11 | 18 | 11 | 18 | 16 | 29 | 15 | 27 |
Total | 461 | 3,992 | 463 | 4,011 | 473 | 4,074 | 472 | 4,066 |
Europe | ||||||||
Republic of Ireland | 22 | 162 | 22 | 162 | 21 | 155 | 22 | 162 |
Netherlands | 93 | 1,070 | 94 | 1,087 | 95 | 1,104 | 95 | 1,104 |
Belgium | 22 | 257 | 23 | 273 | 26 | 307 | 25 | 298 |
Total | 137 | 1,489 | 139 | 1,522 | 142 | 1,566 | 142 | 1,564 |
Total Group
|
598 |
5,481 |
602 |
5,533 |
615 |
5,640 |
614 |
5,630 |