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Q3 Trading Update

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RNS Number : 5229V
Carpetright PLC
31 January 2017
 

Carpetright plc

 

Q3 Trading Update

 

Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces an update on trading for the 13 weeks ended 28 January 2017.

 

Highlights

·     Return to quarterly sales growth in the UK.

·     Rest of Europe continues to benefit from improved consumer sentiment and positive currency impact.

·     Board remains comfortable with the range of market expectations for the Group's full year profit.(note 1)


·     UK

Like-for-like sales for the four weeks to 28 January 2016, up 6.8%

Like-for-like sales for the thirteen week period up 1.9% (notes 2, 3)

120 stores now trading under the new brand identity, delivering sales growth above comparable stores in the rest of the estate.  On track to achieve 150 stores by the end of April, in line with our accelerated refurbishment plan.

One new store opened, one relocated and three closed in the period, giving a net reduction of two stores - leaving a total of 427 trading locations.

Two new stores scheduled to open in the next quarter in Leeds (Birstall) and Bath.


·     Rest of Europe

In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) increased by 5.4%.  This translates to an increase of 22.4% in reported currency.

One store opened during the period, leaving 138 trading locations.


 

Wilf Walsh, Chief Executive, said:

 

"We are pleased to announce a return to quarterly like-for-like sales growth in the UK.  Our trading performance over the last four weeks, with like-for-like growth of 6.8%, gives us confidence that our turnaround strategy is on track.  The refurbished stores with our new brand identity continue to outperform the un-invested estate and we are confident of hitting our target of 150 stores - representing over one third of the UK estate by the financial year-end. 

 

"Like-for-like sales growth in our Rest of Europe business was better than expected as consumer spending continued to recover in the Netherlands.

 

"Whilst the outlook for the UK consumer remains uncertain, we remain confident in our plan and are comfortable with the current range of market expectations."

 

 

The Group will issue a pre-close update on Tuesday, 25 April 2017 and 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 £15.6m, with a range

from £13.9m to £16.5m.

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


13 weeks to

28 January

2017

39 weeks to 28 January 2017

26 weeks to 29 October 2016

12 weeks to

23 January

 2016

38 weeks to

23 January

 2016

UK






-       Total

0.8%

(3.4%)

(6.4%)

(1.3%)

1.1%

-       Like-for-like

1.9%

(1.3%)

(2.9%)

2.4%

3.3%

Rest of Europe






-       Total (in local currency)

5.4%

2.2%

(1.4%)

4.4%

4.0%

-       Like-for-like (in local currency)

5.2%

2.4%

(1.5%)

4.2%

5.9%

-       Total (in GBP)

 

22.4%

16.7%

11.9%

(2.7%)

(2.7%)

 

Group Sales (in GBP)

 

 

3.7%

 

(0.7%)

 

(3.8%)

 

(1.5%)

 

0.6%

 

 

Appendix 2: Store portfolio

 


Current

Financial Year

Previous

Financial Year

Store portfolio

28 January 2017

Interim

29 October 2016

23 January 2016

Year end

30 April 2016


Stores

Sq ft

'000



Stores

Sq ft

'000

Stores

Sq ft

'000

UK









Standalone

414

3,662

415

3,672

421

3,755

420

3,734

Concessions

13

24

14

26

15

29

15

29

Total

427

3,686

429

3,698

436

3,784

435

3,763

Europe









Republic of Ireland

21

157

21

157

22

162

21

157

Netherlands

94

969

93

950

93

1,044

93

985

Belgium

23

235

23

235

23

258

22

245

Total

138

1,360

137

1,342

138

1,464

137

1,387

 

Total Group

 

 

565

 

 5,046

 

566

 

 5,040

 

574

 

 5,248

 

572

 

5,150

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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