Interim Management Statement

Friday 15 February 2013

Darty plc Interim Management Statement

Darty plc today announces an Interim Management Statement for the period 1 November 2012 to date. Financial information is for the third quarter period from 1 November 2012 to 31 January 2013, based on unaudited management accounts.

Revenue growth as reported in Euros Revenue growth in local currency

* BCC, Vanden Borre and Datart

** Darty Turkey and Darty Spain. Darty Italy excluded.

Summary

·; Positive like-for-like sales in France, Belgium and the Netherlands, with very good performance in Multimedia and Communications, particularly Tablets

·; Continued double digit growth of web sales confirming the strong customer appeal of our cross-channel offer

·; On a like-for-like basis revenue fell by 0.5 per cent. Total revenue in the period was down by 2.5 per cent in local currency, in part reflecting the impact of the new Darty Telecom agreement. Gross margin was down 110 basis points, reflecting market conditions and product mix

·; Sales trends have softened at the end of the period and certain markets have become increasingly promotional. If these conditions continue then adjusted profit before tax for the year to 30 April 2013 for the Continuing Group is unlikely to achieve the lower end of current market expectations*

·; As previously announced, disposal of Darty Italy's operations was approved by shareholders on 17 January, and is expected to complete on 1 March

·; As announced on 1 February,  Régis Schultz will join as Chief Executive on 1 May

Dominic Platt, Acting Chief Executive, commented:

"It was encouraging to see positive like-for-like sales in France, Belgium and the Netherlands and very strong performance in Multimedia and Communications. The period also confirmed the continued success and customer appeal of our cross-channel proposition. Markets overall however are challenging and highly promotional, and this, together with the product mix, is having an adverse impact on gross margins and profitability.

"We remain confident however that the progress we are making on our recently announced three-stage plan - "Nouvelle Confiance" - will restore shareholder value - by eliminating the losses at our non-core businesses, increasing profitability in France, Belgium and the Netherlands, and improving efficiencies in the cost base."

Group

On a like-for-like basis revenue fell by 0.5 per cent. Total Group revenue fell by 2.3 per cent in Euros and 2.5 per cent in local currency. All businesses saw strong growth in Multimedia and Communications, especially Tablets, with Vision remaining very weak. This product mix together with the promotional market conditions led to gross margin being down 110 basis points. The continued appeal of our cross-channel offer saw web-generated sales grow by over 14 per cent to represent over 11 per cent of total product sales.

Darty France

At Darty France, like-for-like revenue was up 0.4 per cent. Total revenue fell by 2.9 per cent, reflecting a more than 3 per cent impact following the completion of the Darty Telecom agreement at the end of the first quarter. Multimedia and Communications grew particularly strongly, gaining market share, with Tablets sales quadrupling and smart phone sales more than doubling, supported by new attractive merchandising.

Darty France traded particularly strongly in the lead up to Christmas and into the January sales period, with record levels of web traffic. Overall web-generated sales were up over 14 per cent to over 13 per cent of total product sales. Gross margin was down 70 basis points, reflecting the product mix and competitive market conditions.

During the period, Darty France received four customer and industry awards: the "Favor'i" award for best technical products website, the Research Q&A Consultancy award for best electrical and multimedia retail network, the "IMC" award for best cross-channel retailer and the "Images d'or" award for expert photo retailer. These awards confirm the acceleration of Darty France's cross-channel approach and refreshed communication since last summer.

Other established businesses

At our Other established businesses, BCC, Vanden Borre and Datart, total revenue grew by 0.7 per cent in local currency and by 0.1 per cent on a like-for-like basis with growth at Vanden Borre and BCC against a strong performance last year. Web-generated sales continued to grow strongly, up over 14 per cent to over 10 per cent of total product sales.

Vanden Borre continued to take further market share. BCC further improved its service offer with the roll-out of free delivery, which supported sales and market share gains in an extremely promotional market. Datart was awarded the MasterCard Electrical Retailer of the Year award during the period, but conditions in the Czech Republic remained challenging.

Promotional market conditions, particularly in the Netherlands, and product mix effect continued to exert pressure on gross margin, which was down over 200 basis points.

Developing businesses

As previously announced, the disposal of Darty Italy's operations was approved by shareholders on 17 January; the transaction is expected to complete on 1 March.

Revenue at Darty Turkey and Darty Spain fell by 10.3 per cent in local currency and by 13.4 per cent on a like-for-like basis. Sales were impacted in Turkey by a strong performance last year and a focus on margin improvement. Darty Spain continued to take share in a market that remained difficult and was increasingly promotional. Overall gross margin was down 100 basis points. Web-generated sales again grew to over three percent of total product sales.

Financial position

Except as detailed above, there have been no material events or transactions impacting the Group's financial position that have taken place since the previously announced 30 April 2012 balance sheet date.

Outlook

At the end of the period sales trends have softened and we are seeing increased promotional activity in a number of markets. If these conditions continue then adjusted profit before tax for the year to 30 April 2013 for the Continuing Group is unlikely to achieve the lower end of current market expectations.*

We remain confident however that the progress we are making on our recently announced three-stage plan - "Nouvelle Confiance" - will restore shareholder value - by eliminating the losses at our non-core businesses, increasing profitability in France, Belgium and the Netherlands, and improving efficiencies in the cost base.

* The lower end of current market expectations for adjusted profit before tax for the Continuing Group for the year to 30 April 2013 is €30 million.

Store numbers and selling space as at 31 January

There will be a telephone conference call for analysts at 08:00 on 15 February 2013. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00am. Replay dial-in number: +44 (0) 20 8196 1998, Access Pin: 9087592

The Group will issue its Full Year Results on Wednesday 19 June 2013.

Enquiries

Analysts

Darty plc

Simon Ward +44 (0) 20 7269 1400

Media

France

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Anne-France Malrieu +33 1 53 70 74 66/+33 6 89 87 61 18

Caroline Simon +33 1 53 70 74 65/+33 6 89 87 61 24

About Darty plc

Darty group is a leading cross channel service led electrical retailer operating over 450 stores in eight European countries and achieving 11% of its products sales on the web. It generated an annual turnover of nearly €4 billion in 2011/12 through three operating segments: Darty (France), Other established businesses (which consists of Vanden Borre in Belgium, BCC in the Netherlands, and Datart in the Czech Republic and Slovakia), and Developing businesses (which consist of Darty Spain and Darty Turkey). Its ordinary shares are listed with the UK Listing Authority and trade on the market for listed securities on the London Stock Exchange under the symbol DRTY.L. It is also listed on the Premier Marche of the Paris Stock Exchange.

For further information, please visit the company's website, www.dartygroup.com.

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, Darty plc does not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.