26th Apr 2016 07:28
LONDON (Alliance News) - Carpetright PLC on Tuesday reported growth in like-for-like sales in the 12 weeks to April 23 and revised its estimate for full-year UK gross margin to a smaller decline than previously expected.
The carpet and floor coverings retailer said UK like-for-like sales in the 12-week period grew by 0.7%, while rest of Europe like-for-likes rose by 1.9% in local currency terms. In the financial year so far to the same date, UK like-for-likes were up 2.9% and rest of Europe like-for-likes increased by 4.6%. Carpetright's current financial year began in May 2015.
Carpetright said the like-for-like performance in the UK and a rebalance of its promotional activity mean UK gross margin will now decline by around 80 to 100 basis points in the full year to end April. It had previously expected UK gross margin to fall by around 100 to 150 basis points.
In the 12-week period, Carpetright closed two stores in the UK and two stores in Europe, while also opening one store in Europe. It now trades from 434 stores in the UK and 137 stores in Europe.
Carpetright added that its full-year profit expectations are unchanged at GBP17.3 million. It will report its full-year results for the year ending April 30 on June 28.
"Our plan to revitalise the Carpetright brand remains on track. Results from the trial of our new retail concept have been encouraging with the trial stores outperforming comparable stores in the estate. We have now completed our analysis of the customer data from the trial, enabling us to finalise the features of a new store format and brand identity which we will shortly begin to roll-out across our UK business in a phased refurbishment programme," Chief Executive Wilf Walsh said in a statement.
"In tandem, we continue to make progress with our efforts to reduce store occupancy costs, with a number of further property deals in the pipeline. We look forward to providing shareholders with a comprehensive update on our strategic plan at the time of our results announcement at the end of June," he added.
Shares in Carpetright were trading down 12% at 338.00 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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