Carpetright PLC Trading Update (3889U)

TIDMCPR

RNS Number : 3889U

Carpetright PLC

24 October 2017

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 
 
 *    Total Group sales up 1.8% 
 
 
 *    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. 
 
 *    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. 
 
 

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: [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 28 April 2018 is for Group underlying profit 
  before tax to be GBP15.8m, with a range from GBP13.8m to GBP16.7m. 
 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. 
 
 

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      Previous Financial 
                                                   Financial           Year 
                                                     Year 
-----------------------------------------------  -----------  --------------------- 
                                                    25 weeks   26 weeks    52 weeks 
                                                          to         to          to 
                                                      21 Oct     29 Oct    29 April 
                                                        2017       2016        2017 
-----------------------------------------------  -----------  ---------  ---------- 
 UK 
 
        *    Total                                    (0.6%)     (6.4%)      (2.6%) 
 
        *    Like-for-like                              0.8%     (2.9%)      (0.5%) 
 Rest of Europe 
 
        *    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                     Previous 
                         Financial                 Financial Year 
                           Year 
                    -----------------  ------------------------------------ 
 Store portfolio          As at             Interim            Year end 
                          21 Oct             29 Oct            29 April 
                           2017               2016               2017 
                    -----------------  -----------------  ----------------- 
                     Stores        Sq   Stores        Sq   Stores        Sq 
                                   ft                 ft                 ft 
                                 '000               '000               '000 
------------------  -------  --------  -------  --------  -------  -------- 
 UK 
      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 
      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 
------------------  -------  --------  -------  --------  -------  -------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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October 24, 2017 02:00 ET (06:00 GMT)