25th Oct 2005 07:00
Carpetright PLC25 October 2005 25th October 2005 Carpetright plc Pre first half close trading statement Carpetright plc, Europe's leading specialist carpet and floor coveringsretailer, today announces its first half pre-close trading update for the first25 weeks of the financial year ending 29 April 2006. Trading in Carpetright's UK and Republic of Ireland business has remaineddifficult in the current weak consumer environment, although the Group believesit continues to make significant improvements in market share. Total sales forthe 25 weeks to 22 October 2005 declined by 6.2% with like for like sales downby 6.7%. Net new Carpetright space increased by 2.4% but the sales growth fromthis space was offset by 1.9% lower sales from the concessions business as ourcomparatives continue to be impacted by the loss of the Allders concessions. Carpetright's European business continues to make good progress with totalproduct sales in local currency increasing by 7.1% and a continued improvementin market share. There has seen a modest decline in UK gross margin in the first 25 weeks as theGroup sought to optimise sales and returns through more aggressive promotionalactivity. The Group has reviewed the effectiveness of these actions and remainsconfident, following a number of changes, that there will be an improvement infull year gross margins as previously indicated. Within the UK and Republic of Ireland 26 stores have opened, including fiveconcessions, and 15 have been closed. The business now operates from 382 storesas well as 32 concessions. In Europe four new stores have opened taking thetotal to 93 stores and a further three stores will open in Holland in the secondhalf. Lord Harris of Peckham, Chairman and Chief Executive, said: "The UK business has continued to trade aggressively in a tough retailenvironment. The comparatives for the second half are weaker than those in thefirst half but it is still too soon to predict a turn in the market. The Groupcontinues to invest in new stores and its underlying infrastructure, both in theUK and Europe, and plans to open two stores in Poland in the second half. TheGroup is well positioned to grow sales and profits once the market improves." The Group's interim results for the six months to 29 October 2005 will bepresented on 13 December 2005. These will be presented under IFRS and the prioryear comparatives will be published in IFRS format before the end of November2005. For further enquiries please contact: Carpetright plcIan Kenyon, Group Finance Director 01708 525522 Citigate Dewe RogersonPatrick Toyne Sewell / Sara Batchelor 020 7638 9571 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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