LONDON (dpa-AFX) - Carpet and floor coverings retailer Carpetright Plc (CPR.L), in its trading update for the 12 weeks ended 20 April 2013, said that the results for the year to date is in line with management's expectations.
Whilst trading conditions remain challenging, the company said it has good momentum with its self-help initiatives which it believes will carry onto the new financial year.
Like-for-like sales in the UK increased by 5.6%. Total sales in the UK increased by 4.4%.
Excluding the expected contraction in sales from the wholesale business, core UK retail business would have reported like-for-like sales growth of 6.7% for the period.
The company said that store base increased by one during the period to 477, of which 180 have now been modernized.
In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) decreased by 10.2%. Total sales declined by 10.2%. The company said that the solid performance in Belgium and the Republic of Ireland offset by continued weakness in the Netherlands.
Darren Shapland, Chief Executive, said,' Whilst the recent cold spring weather has been positive to our sales, we believe this performance reflects the continued success of our programme of self-help initiatives. These include the ongoing programme of store refurbishments, the introduction of our improved laminate range to more stores, the development of our bed business and the increased use of digital media. This has been achieved in a market which remains challenging with consumers very focused on getting a good deal, necessitating a highly visible and compelling promotional programme.
The company stated that gross margin for the period has been in line with previously announced expectations and its view of the full year gross profit percentage improvement is now in the range of 225-250 basis points above the prior year.
The company said it will report its preliminary results for the financial year ending 27 April 2013 on Tuesday, 25 June 2013.
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