26 Jan 2016 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 12 weeks ended 23 January 2016.
Highlights
· UK
o Sales in the four weeks to 23 January 2016, up 6.0% on a like-for-like basis.
o Sales for the twelve week period up 2.4% on a like-for-like basis. Total sales declined by 1.3%.(notes 1, 2, 3)
o Full year guidance of a decline in gross profit percentage revised to between 100 and 150 basis points to reflect a more promotional marketplace and a greater proportion of beds and smooth flooring in the sales mix.
o Four stores were opened and six closed during the period, leaving 436 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 4.2% on year. Total sales increased by 4.4%. After the impact of currency movements this translates to a 2.7% decrease in total sales.
o Two stores opened and two closed during the period, leaving 138 trading locations.
· The Group's full year profit expectations are unchanged. (note 4)
Wilf Walsh, Chief Executive, said:
"In the UK, we delivered our ninth consecutive quarter of like-for-like sales growth. While we saw some softening of like-for-likes in the pre-Christmas period, reflecting lower footfall, customer numbers recovered in the important January sale period. Our trading performance over the last four weeks, with like-for-like growth of 6.0% against exceptionally strong prior year comparatives, gives us confidence that the enhanced interest free credit offer and strong promotions launched on Boxing Day are hitting the spot with our customers. Like-for-like sales growth in our Rest of Europe business was better than expected as consumer spending continued to recover, particularly in the Netherlands and the Republic of Ireland."
The Group will issue a pre-close update on Tuesday, 26 April 2016 and will report its preliminary results for the financial year ending 30 April 2016 on Tuesday, 28 June 2016.
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
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. | Sales represents amounts payable by customers for goods and services before deducting VAT and other charges. |
2. | 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. |
3. | For the UK and Republic of Ireland the current financial year (2016) is a 52 week year, ending 30 April 2016. The previous financial year (2015) was a 53 week year, ended 2 May 2015. In order to provide meaningful year on year trading information, current year financial trading period in this announcement relates to weeks 1 to 25 of 2016, compared to weeks 2 to 26 of 2015. |
4. | Current range of market expectations for the year ending 30 April 2016 is for Group underlying profit before tax to be £17.0m to £18.0m. |
5. | 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).
In the UK, Carpetright is the market leader in floorcoverings where it has increased its market share from 22.7% in 2010 to 25.3% in 2014 and an estimated 25.7% in 2015 (source: Verdict - UK Furniture and Floorcoverings Forecast 2020, published August 2015).
Appendix 1: Group Sales
Current Financial Year | Previous Financial Year | ||||
12 weeks to 23 January 2016 | 38 weeks to 23 January 2016 | 26 weeks to 31 October 2015 | 13 weeks to 24 January 2015 | 39 weeks to 24 January 2015 | |
UK | |||||
- Total | (1.3%) | 1.1% | 2.6% | 6.6% | 5.5% |
- Like-for-like | 2.4% | 3.3% | 3.7% | 7.5% | 6.8% |
Rest of Europe | |||||
- Total (in local currency) | 4.4% | 4.0% | 5.5% | (0.8%) | (1.8%) |
- Like-for-like (in local currency) | 4.2% | 5.9% | 5.5% | 1.7% | (0.7%) |
- Total (in GBP)
| (2.7%) | (2.7%) | (5.0%) | (6.0%) | (7.8%) |
Group Sales (in GBP)
|
(1.5%) |
0.6% |
1.4% |
4.7% |
3.4% |
Appendix 2: Store portfolio
Current Financial Year | Previous Financial Year | |||||||
Store portfolio | 23 January 2016 | Interim 31 October 2015
| 24 January 2015
| Year end 2 May 2015 | ||||
Stores | Sq ft '000 | Stores | Sq ft '000 | Stores | Sq ft '000 | Stores | Sq ft '000 | |
UK | ||||||||
Standalone | 421 | 3,755 | 425 | 3,799 | 450 | 3,974 | 448 | 3,963 |
Concessions | 15 | 29 | 13 | 19 | 11 | 18 | 12 | 16 |
Total | 436 | 3,784 | 438 | 3,818 | 461 | 3,992 | 460 | 3,979 |
Europe | ||||||||
Republic of Ireland | 22 | 162 | 22 | 162 | 22 | 162 | 22 | 162 |
Netherlands | 93 | 1,044 | 94 | 1,044 | 93 | 1,070 | 93 | 1,046 |
Belgium | 23 | 258 | 22 | 247 | 22 | 257 | 22 | 257 |
Total | 138 | 1,464 | 138 | 1,453 | 137 | 1,489 | 137 | 1,465 |
Total Group
|
574 |
5,248 |
576 |
5,271 |
598 |
5,481 |
597 |
5,444 |