Restructuring Impacts Half-Year Sales at Carpetright

Carpetright has reported on trading for the 26 week period ended 27 October 2018.

Headlines from the update follow:

• As previously reported, and as anticipated, trading in the first part of the period was heavily impacted by disruption caused by the Group's restructuring announcements.

• The implementation phase of this process commenced in earnest during the second quarter.

• While as expected, like-for-like performance remained negative in this second part of the period, there was an improvement in the trend, as the restructuring activity began to take effect.

• In this period, we closed 67 underperforming stores (UK: 65; Rest of Europe: 2), with a further 6 stores expected to close prior to the end of December 2018.

• We remain confident of achieving the £19m of annualised benefits announced as part of the recapitalisation of the Group in May 2018.

• Our trading performance in the Rest of Europe (The Netherlands, Belgium and the Republic of Ireland) has been slightly ahead of the same period last year.

• A further update will be provided at the announcement of the interim results for the 26 weeks ended 27 October 2018 on Tuesday, 11 December 2018.

Wilf Walsh, Chief Executive, said: 

"This is a transitional year for Carpetright as we work through our restructuring plan. I am pleased to report that this activity is firmly on track and has started to yield benefits as we create a right-sized and well-located portfolio of stores on sustainable rents. We also continue to modernise our existing estate as well as investing in our digital capability."

Carpetright also announced that Andrew Page has advised the Board that he wishes to stand down as Non-Executive Director to focus on his other commitments.  Andrew will retire from the Carpetright Board on 31 December 2018 and a search is now underway for his successor.

Bob Ivell, Chairman, commented: "The Board and I would like to thank Andrew for his support and significant contribution to Carpetright since his appointment in 2013, during which time the Company has benefited greatly from his wise counsel.  We wish him well in all his future endeavours."

Source : Insight DIY Team and Carpetright

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