Carpetright PLC Q3 Trading Update (5229V)

TIDMCPR

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 
 
      o Like-for-like sales for the four weeks to 28 January 2016, up 6.8% 
      o Like-for-like sales for the thirteen week period up 1.9% (notes 2, 3) 
      o 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. 
      o 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. 
      o Two new stores scheduled to open in the next quarter in Leeds (Birstall) and Bath. 
 
 *    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 5.4%. This translates to an increase 
       of 22.4% in reported currency. 
      o 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: [phone] 
 
 Citigate Dewe Rogerson 
 Kevin Smith / Nick Hayns 
 Tel: [phone] 
 

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 GBP15.6m, 
            with a range 
            from GBP13.9m to GBP16.5m. 
 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              Previous Financial 
                                                                 Year                            Year 
-----------------------------------------------  ----------------------------------  -------------------------- 
                                                     13 weeks   39 weeks   26 weeks      12 weeks      38 weeks 
                                                           to      to 28      to 29            to            to 
                                                   28 January    January    October    23 January    23 January 
                                                         2017       2017       2016          2016          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                              Previous 
                               Financial Year                        Financial Year 
                    -----------------------------------  ------------------------------------ 
 Store portfolio           28 January           Interim         23 January           Year end 
                                 2017        29 October               2016           30 April 
                                                   2016                                  2016 
                    -----------------  ----------------  -----------------  ----------------- 
                     Stores        Sq                     Stores        Sq   Stores        Sq 
                                   ft                                   ft                 ft 
                                 '000                                 '000               '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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January 31, 2017 02:00 ET (07:00 GMT)