Carpetright plc
Interim Management Statement
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces a trading update for its third quarter, being the 13 weeks ended 26 January 2013.
Highlights
The Group result for the financial year to date is in line with management's expectations.
UK
o Like-for-like sales in the UK increased by 3.2%. Total sales in the UK increased by 1.6%.
o Store base decreased by four during the period to 476, of which 122 have now been modernised.
Rest of Europe
o In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) decreased by 11.5%. Total sales declined by 11.2%.
o Solid performance in Belgium and the Republic of Ireland offset by continued weakness in the Netherlands.
Darren Shapland, Chief Executive, said:
"We are pleased to report a period of good like-for-like sales growth in the UK of 3.2%. Excluding the expected contraction in sales from the wholesale business, our core UK retail business (note 3) would have reported like-for-like sales growth of 4.7% for the period. We believe this performance reflects the success of our programme of self-help initiatives, including the development of our bed business, introduction of our laminate range to more stores and the ongoing programme of store refurbishments, all of which gained momentum in the period.
"Gross margin for the period has been in line with our previously announced expectations and our guidance of a full year gross profit percentage improvement in the range of 200-250 basis points above the prior year, remains unchanged. (note 4)
"Our business in the Rest of Europe contrasts a solid performance in both Belgium and the Republic of Ireland, offset by the continued weak performance of our business in the Netherlands. Our focus in the Netherlands is on protecting profit in what remains a very weak consumer environment.
"The Group result for the year to date is in line with management's expectations and whilst trading conditions remain challenging, we have good momentum in our self-help initiatives. That said, as ever, our performance in the final quarter will be critical to the outcome for the year as a whole."
The Group will issue a pre-close update on Tuesday, 23 April 2013 and will report its preliminary results for the financial year ending 27 April 2013 on Tuesday, 25 June 2013.
