25 Apr 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 12 weeks ended 22 April 2017.
Highlights
· Continued growth in the UK, with like-for-like sales up 1.4% despite tougher market conditions experienced across the period. |
· Rest of Europe continues to benefit from improving economic confidence and positive currency impact. |
· Full year profit expected to be within the current range of market expectations, albeit towards the lower end.(note 1) |
|
· UK |
o In a more difficult consumer environment, like-for-like sales were up 1.4% in the twelve week period. (notes 2, 3) |
o Further acceleration of store refurbishment programme with 188 stores trading under the new brand identity by period end, delivering sales growth above comparable stores in the rest of the estate. |
o Three new stores opened in Liverpool, Leeds and Bath. |
o Continued progress in reducing fixed operating costs, with two stores relocated into smaller units and three closures, leaving a total of 427 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 1.4%. Total sales increased by 1.9%, this translates to an increase of 11.0% in reported currency. |
o One store relocated to a smaller unit, leaving 138 trading locations. |
Wilf Walsh, Chief Executive, said:
"In common with other retailers in the home improvement sector in the UK we have experienced tougher trading conditions over the last three months. Having said that, we are pleased to report continued like-for-like sales growth, with an increase of 1.4% in our fourth quarter.
"Following a further acceleration of the investment programme in the final quarter we have completed 188 store refurbishments - surpassing our target of 150 stores, which represents over 40% of the UK estate. Despite the inevitable disruption factor, the performance of these refurbished stores has been encouraging giving us confidence to continue with the programme.
"Trading in the Rest of Europe was in line with our expectations, underpinned by a continuing recovery in economic confidence, particularly in the Netherlands.
"Whilst we remain confident in our turnaround plan, the level of sales growth in our final quarter leads us to expect that full year profits will be towards the lower end of the current range."
The Group will report its preliminary results for the financial year ending 29 April 2017 on Tuesday, 27 June 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 29 April 2017 is for Group underlying profit before tax to be £15.2m, with a range from £13.9m to £16.2m. |
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. |
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 | |||
| 12 weeks to 22 April 2017 | 25 weeks to 22 April 2017 | 51 weeks to 22 April 2017 | 12 weeks to 23 April 2016 | 52 weeks to 30 April 2016 |
UK |
|
|
|
|
|
- Total | (0.1%) | 0.4% | (2.7%) | (2.9%) | (1.3%) |
- Like-for-like | 1.4% | 1.7% | (0.6%) | 0.7% | 2.8% |
Rest of Europe |
|
|
|
|
|
- Total (in local currency) | 1.9% | 3.4% | 1.7% | 2.6% | 4.9% |
- Like-for-like (in local currency) | 1.4% | 3.3% | 2.2% | 1.9% | 4.8% |
- Total (in GBP)
| 11.0% | 16.4% | 16.4% | 10.7% | (1.2%) |
Group Sales (in GBP)
|
1.6% |
2.7% |
0.0% |
(0.9%) |
(1.3%) |
Appendix 2: Store portfolio
| Current Financial Year | Previous Financial Year | ||||||
Store portfolio | 22 April 2017 | 28 January 2017 | 23 April 2016 | Year end 30 April 2016 | ||||
| Stores | Sq ft '000 | Stores | Sq ft '000 | Stores | Sq ft '000 | Stores | Sq ft '000 |
UK |
|
|
|
|
|
|
|
|
Standalone | 414 | 3,669 | 414 | 3,662 | 419 | 3,732 | 420 | 3,734 |
Concessions | 13 | 24 | 13 | 24 | 15 | 29 | 15 | 29 |
Total | 427 | 3,693 | 427 | 3,686 | 434 | 3,761 | 435 | 3,763 |
Europe |
|
|
|
|
|
|
|
|
Republic of Ireland | 21 | 157 | 21 | 157 | 21 | 157 | 21 | 157 |
Netherlands | 94 | 963 | 94 | 969 | 93 | 1,037 | 93 | 985 |
Belgium | 23 | 235 | 23 | 235 | 23 | 252 | 22 | 245 |
Total | 138 | 1,355 | 138 | 1,360 | 137 | 1,446 | 137 | 1,387 |
Total Group
|
565 |
5,048 |
565 |
5,046 |
571 |
5,207 |
572 |
5,150 |