skip to main content
Find Insight DIY on
* * *

UK DIY News

Carpetright reports solid Q4 trading

Carpetright store

Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces an update on trading for the 12 weeks ended 18 April 2015 and expectations for the full year.


Highlights

Group

  • Strong trading momentum maintained in final quarter – full year pre-tax profits to be ahead of current market expectations (note 4). 
  • Sustained recovery in UK like-for-like sales and continued improvement in trading conditions in the Rest of Europe means that Group now expects underlying pre-tax profit for the year ending 2 May 2015 will be around £13m.

UK

  • Like-for-like sales (note 2) in the UK increased by 10.5%. Total sales increased by 9.0%.
  • Full year gross profit margin expected to be around 130 basis points below the prior year, around the midpoint of our previously guided range.
  • A net two stores closed during the period, leaving 459 trading locations.

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 2.4%. Total sales declined by 0.7%. After the impact of currency movements this translates to a 12.6% decrease in total sales.
  • Full year gross profit margin expected to be around 250 basis points ahead of the prior year.
  • Store numbers remained unchanged following one opening and one closure during the period, leaving 137 trading locations.

Wilf Walsh, Chief Executive, said:

"I am pleased to report that the Group’s encouraging trading momentum is being maintained during the final quarter of our financial year.

“In the UK our continued focus on effective promotional activity and the introduction of an interest free credit offer has supported solid like-for-like sales growth of 10.5%. Sales in the Rest of Europe have also continued to improve, building on the progress made in the third quarter.

“In light of this strong finish to the year, we now expect that underlying pre-tax profits for the full year will be above the current range of market expectations at around £13m.

“The Group is well positioned to continue to grow market share and profitability, as we implement our plans to extend the appeal of the Carpetright brand."

The Group will report its preliminary results for the financial year ending 2 May 2015 on Tuesday, 30 June 2015.

Notes

1) All sales figures are quoted after deducting VAT.
2) Like-for-like sales calculated as this year’s net sales compared to last year’s net sales for all stores that are at least 12 months old at the beginning of our current 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. Sales from insurance and house building contracts are supplied through the stores and included in their figures.
3) There have been no significant changes to the Group’s financial position during the period.
4) Current range of market expectations for the year ending 2 May 2015 is for Group underlying profit before tax to be £10.0m to £11.0m.      

Appendix 1: Group Sales 

 Current Financial YearPrevious Financial Year
 12 weeks to18 April 201525 weeks to18 April 2015 51 weeks to18 April 2015 8 weeks to22 March 2014(previously reported)52 weeks to 28 April2014 (previously reported)
UK     
-          Total9.0%7.6%6.3%(0.8%)(1.5%)
-          Like-for-like10.5%8.9%7.7%0.2%(0.2%)
Rest of Europe     
-          Total (in local currency)(0.7%)(0.8%)(1.6%)(5.3%)(8.6%)
-          Like-for-like (in local currency)2.4%2.0%0.1%(5.3%)(8.6%)
-          Total (in GBP) (12.6%)(10.0%)(9.6%)(8.5%)(5.4%)
 Group Sales (in GBP)  5.4% 4.9% 3.8% (2.2%) (2.2%)

 Appendix 2: Store portfolio 

 Current Financial YearPrevious Financial Year
Store portfolio18 April 201525 January 2015 (previouslyreported)22 March 2014(previouslyreported)Year end28 April 2014(previouslyreported)
 StoresSq ftStoresSq ftStoresSq ftStoresSq ft
UK        
Standalone4473,9524503,9744574,0474574,039
Concessions1220111815201527
Total4593,9724613,9924724,0674724,066
Europe        
Republic of Ireland22162221622115522162
Netherlands931,052931,070951,104951,104
Belgium22257222572630725298
Total1371,4721371,4891421,5661421,564
 Total Group  596  5,444 598  5,481 614 5,633 614 5,630

Source : Carpetright
http://www.carpetright.plc.uk/

21 April 2015

Related News

view more UK DIY News
*

Insight DIY always publishes the latest news stories before anyone else and we find it to be an invaluable source of customer and market information.

*
Max Crosby Browne - CEO, Home Decor
Newsletters

Don't miss out on all the latest, breaking news from the DIY industry