24 Oct 2017 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 25 weeks ended 21 October 2017.
Highlights |
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· Total Group sales up 1.8% |
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· UK |
o Like-for-like sales growth of 0.8%, with an increase of 2.1% within the flooring category, offset in part by reduced bed sales which were impacted in the period by an acceleration of re-ranging activity to improve the proposition. (notes 2, 3) |
o A further 21 stores converted to the new brand identity - more than half the estate now refurbished. |
o Stores trading under our new brand identity continue to deliver sales growth above comparable stores in the rest of the estate. |
o Two stores were opened and nine closed in the year to date, giving a net reduction of seven, leaving 419 trading locations. |
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· Rest of Europe (Netherlands, Belgium and the Republic of Ireland) |
o In local currency terms, like-for-like sales increased by 6.3%. |
o Total of 25 stores now refurbished with strong post-refurbishment performance. |
o During the period, two stores were closed leaving 136 trading locations. |
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Wilf Walsh, Chief Executive, said:
"While trading conditions in the UK remained volatile over the first half, the 2.1% increase in like-for-like sales in our core flooring category is pleasing given the increased level of competition. Total UK like-for-like sales in the period were impacted in the short term by our decision to accelerate the re-ranging activity in our beds business.
"Sales in our Rest of Europe business have been equally volatile, but we have been encouraged by more recent like-for-like sales growth, in part reflecting the strong post-refurbishment performance of the 25 rebranded stores we have now completed.
"Whilst we expect the Group first half profit to be below that of the prior year, we are pleased with the improvement in sales in the Rest of Europe and beds in the UK over the past few weeks. When these are combined with continued progress in our core flooring category we expect a significantly stronger second half with full year profit within the current range of market expectations.
"We look forward to updating our shareholders on the progress in our plan and momentum in the business at our first half results presentation in December."
The Group will report its interim results for the first half of the current financial year on Tuesday, 12 December 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 28 April 2018 is for Group underlying profit before tax to be £15.8m, with a range from £13.8m to £16.7m. |
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. |
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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 | |
| 25 weeks to 21 Oct 2017 | 26 weeks to 29 Oct 2016 | 52 weeks to 29 April 2017 |
UK |
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|
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- Total | (0.6%) | (6.4%) | (2.6%) |
- Like-for-like | 0.8% | (2.9%) | (0.5%) |
Rest of Europe |
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|
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- Total (in local currency) | 7.5% | (1.4%) | 2.0% |
- Like-for-like (in local currency) | 6.3% | (1.5%) | 2.5% |
- Total (in GBP)
| 14.4% | 11.9% | 16.4% |
Group Sales (in GBP)
|
1.8% |
(3.8%) |
0.2% |
Appendix 2: Store portfolio
| Current Financial Year | Previous Financial Year | ||||
Store portfolio | As at 21 Oct 2017 | Interim 29 Oct 2016 | Year end 29 April 2017 | |||
| Stores | Sq ft '000 | Stores | Sq ft '000 | Stores | Sq ft '000 |
UK |
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|
|
|
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Standalone | 411 | 3,629 | 415 | 3,672 | 414 | 3,669 |
Concessions | 8 | 11 | 14 | 26 | 12 | 22 |
Total | 419 | 3,640 | 429 | 3,698 | 426 | 3,691 |
Europe |
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|
|
|
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Republic of Ireland | 21 | 157 | 21 | 157 | 21 | 157 |
Netherlands | 92 | 958 | 93 | 950 | 94 | 975 |
Belgium | 23 | 228 | 23 | 235 | 23 | 228 |
Total | 136 | 1,342 | 137 | 1,342 | 138 | 1,360 |
Total Group
|
555 |
4,982 |
566 |
5,040 |
564 |
5,051 |