Darty plc announces third quarter trading for the period 1 November 2015 to 31 January 2016

Strong peak trading and further improvement in cash position

PARIS, 2016-Feb-18 — /EPR Retail News/ — Darty plc today announces third quarter trading for the period 1 November 2015 to 31 January 2016, based on unaudited management accounts.

Summary

  • Successful Christmas and winter sale periods, with a strong development of click and collect up 53 per cent at Darty
  • Continued market outperformance in France with like-for-like sales up 4.4 per cent, positive like-for-like sales in Belgium and a decline in the Netherlands due to new warehouse IT system, which lessened towards the end of the period
  • ‘Confiance 4.0’ plan on track and delivering strong results in terms of cash, costs, franchises and multi-channel development
  • Focus on working capital resulted in average net debt for the quarter reducing by nearly €100 million compared to the same quarter last year

Q3 revenue change (3 months to 31 January)

Total** Like-for-like*
France 2.8% 4.4%
Belgium and the Netherlands 2.1% (3.8)%
Total 2.6% 2.7%

*excluding Mistergooddeal.com
**including Mistergooddeal.com

Régis Schultz, Chief Executive, commented:

“Despite events in Paris we performed well over Christmas and the winter sale period with a competitive offer and good product availability. Through the continued efforts of all our teams and the improvements made in the business over recent years we continued to outperform the market in France with Darty’s like-for-like sales up 4.4 per cent, and Belgium delivered a third successive quarter of positive like-for-like sales.

“The Group is moving at pace on our ‘Confiance 4.0’ plan with continuation of our multi-channel and franchise growth, cost initiatives and an improving cash position.”

Group

Total Group revenue was up 2.6 per cent and up 4.0 per cent excluding Mistergooddeal.com. Like-for-like sales increased by 2.7 per cent. We saw positive sales in all major product categories apart from multi-media, where the market remained weak. Sales were particularly strong in communication and we saw a second quarter of positive vision sales.

Our web-generated sales continued to grow, up 12 per cent excluding Mistergooddeal.com, now representing 16 per cent of total product sales. Underlying group gross margin was down around 40 basis points for the period with a less favourable product mix than earlier in the year. Mistergoodeal.com then had a positive impact of around 20 basis points and there was a dilutive impact of around 30 basis points from the franchise business.

France

Darty excluding Mistergooddeal.com continued to outperform the market, with total revenue up 4.5 per cent and like-for-like sales up 4.4 per cent. We were well prepared for and traded well over the Christmas and winter sale periods, with a wide range and good availability of products. Whilst footfall in stores reduced, conversion rates improved. As a result of our good social relations we were one of the first retailers able to open additional stores on a Sunday, with those opened in Paris seeing double digit sales growth.

Darty’s web-generated sales represented over 16 per cent of total product sales. This was driven by a 53 per cent growth in click and collect sales, which reached a record 64 per cent of web sales on Christmas Eve. We also saw a best ever Sunday trading on Darty.com during the Black Friday weekend and a record 1.4 million visits to Darty.com on the first day of the winter sale.

Overall gross margin for France was down around 60 basis points, with underlying gross margin down around 50 basis points. We continued to grow the profitable franchise business with a further 7 openings to total 59 in France, which had a dilutive impact of around 40 basis points on gross margin. Mistergooddeal.com had a positive impact of around 20 basis points on gross margin and whilst its revenue remains under pressure the business is breakeven.

Belgium and the Netherlands

At Vanden Borre in Belgium and BCC in the Netherlands overall revenue was up 2.1 per cent and like-for-like sales were down 3.8 per cent. Web-generated sales continued to grow strongly, up over 8 per cent, to over 14 per cent of total product sales. Overall gross margin was up around 10 basis points.

Vanden Borre delivered a third successive quarter of positive like-for-like sales, with strong web sales, but continued to see some small gross margin pressure from competitive market conditions.

Gross margin again improved at BCC. Revenue however continued to see some disruption from the implementation of a new warehouse IT system, which lessened towards the end of the period.

Financial position

Our cash enhancement programme continued to deliver an improvement in working capital with average net debt for the quarter reducing by nearly €100 million compared to the same quarter last year, resulting in the Group’s €225 million revolving credit facility being undrawn (31 January 2015: €150 million drawn). Our objective remains to reduce average net debt by at least €50 million for the year compared to the prior year and to reduce year end net debt by around €40 million compared to the prior year end.

There will be a telephone conference call for analysts at 08.00 on 18 February 2016. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00. Replay dial-in number: +44 (0) 20 8196 1998, Access Pin: 7570986#.

The Group will issue its Full Year Results on Thursday 16 June 2016.

 

Enquiries

Analysts
Darty plc
Simon Ward
+44 (0) 20 7269 1400

Media
UK
Finsbury
Jenny Davey
+44 (0) 20 7251 3801

France
Le Public Système
Ségolène de Saint Martin
+33 1 41 34 23 31

 

About Darty plc

Darty group is a leading multi-channel service led electrical retailer operating over 400 stores and websites in three European countries. It generated an annual turnover of over €3.5 billion in 2014/15 through its operations of Darty and Mistergooddeal.com in France, Vanden Borre in Belgium and BCC in the Netherlands. 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 NYSE Euronext Paris.

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.

 

APPENDIX

Store numbers as at 31 January

2016 2015
France 223 228
Belgium and the Netherlands 137 118
360 346
Franchise Stores* 63* 37
Group Total 423 383

*Includes 59 stores in France (2015:34) and 4 overseas (2015:3)

Darty plc HY results 2015/16: significant improvement in our cash position

LONDON, 2015-12-11 — /EPR Retail News/ — Revenue and profit growth, positive contribution from our growth initiatives and a significant improvement in our cash position

  • Improving momentum with Q2 like-for-like sales1 up 4.7 per cent in France and 2.5 per cent for the Group.
  • Strong trading from the Summer sale and ‘Back to School’ period and market share gains in both France and Belgium.
  • Retail profit up 36 per cent for the Group to €36.1 million (2015: €26.4 million).
  • Good progress with our growth initiatives:

– 13 franchise stores opened bringing the total to 56. The franchise operation is profitable;
– 11 kitchen corners opened bringing the total to 82 with total sales up over 30 percent;and
– Break even achieved at Mistergooddeal.com.

  • Focus on working capital delivered a €92 million reduction in net debt year on year.

Financial Summary for the six months ended 31 October 2015²

  • Group revenue up 1.2 per cent to €1,664.5 million (2015: €1,644.4 million). Group like-for-like sales up 1.1 per cent (2015: down 1.2 per cent).
  • Group retail profit3 increased 36 per cent to €36.1 million (2015: retail profit €26.4 million). Retail profit up 51 per cent in France including €8 million of net property gains (2015: €nil) and up inBelgium. Increased losses in the Netherlands following disruption from a new IT system.
  • Exceptional items of €12.6 million (2015: €4.1 million) principally relating to restructuring in France and systems issues in the Netherlands.
  • Operating profit increased to €22.0 million (2015: €21.1 million).
  • Profit for the period was €1.9 million (2015: €0.8 million).
  • Adjusted profit before tax4 up 71 per cent to €24.3 million (2015: €14.2 million). Adjusted earnings per share was 2.5 cents (2015: 1.1 cents).
  • Net debt at the end of the period was €194.9 million (€287.2 million as at 31 October 2014) with net cash inflow including discontinued operations of €28.9 million (2015 outflow: €102.0 million).
  • The Board has declared an unchanged interim dividend of 0.875 cents per share, to be paid on 30 March 2016.

Offer from Groupe Fnac S.A. (“Fnac”)

  • On 20 November 2015 the Boards of Darty and Fnac announced agreement on the terms of a pre- conditional offer to be made by Fnac for Darty including:

– 1 Fnac share for every 37 Darty shares. Partial cash alternative of up to £66.7 million

  •  Based on the closing price of €55.6per Fnac share on 19 November this represents;

– Value of 105 pence per Darty share, and
– Premium of 33 per cent to closing price of 81.0 pence on 29 September;

  • Based on the closing price of €60.4 per Fnac share on 5 November 2015 (being the last business day before the date of the agreement on key offer terms announcement) this represents;

– Value of 116 pence per Darty share, and
– Premium of 47 per cent to closing price of 81.0 pence on 29 September

  • Darty shareholders would own around 46 per cent of the combined Group excluding the effect of the partial cash alternative;
  • Darty shareholders will be entitled to receive future dividends in the ordinary course prior to completion; and
  • Completion expected in or around mid 2016 if the offer receives phase 1 competition clearance or Q4 2016 if the offer receives phase 2 competition clearance.

Chairman Alan Parker commented:“This was a good first half performance as the benefits of our three year ‘Nouvelle Confiance’ strategy delivered clear results. We have devised a new plan, ‘Confiance 4.0’, to secure further growth building on our market leadership position, strong brand, improved customer service offer and expansion into new catchment areas through our franchise programme.“On 20 November Fnac launched a pre-conditional offer for Darty but until such a time as that offer completes, we remain fully committed to delivering on our plans and it remains business as usual.”Chief Executive Régis Schultz commented:“We have made a strong start to the year with market share gains, significantly improved profit performance and a substantial reduction in our net debt.“Our growth initiatives, the franchise operation, extended kitchen offer and Mistergooddeal.com, are progressing and delivering good results. We also continue to innovate in terms of digitalisation and have enhanced our market leading services with same and next day delivery and installation in France for large appliances and the launch of a services market place.“Sales have held up well in the past few weeks despite events in France and Belgium and we are well prepared for the peak trading period.”

¹Calculated based on stores that have been open for a full year and the first full four weeks of trading have passed. Stores where retail space has been added or where a complete format redesign has taken place which involves material capital expenditure are excluded. Sales through internet sites, excluding Mistergooddeal.com, are included.
² Excluding results of discontinued operations except where stated otherwise.
³ Represents total operating profit before the share of joint venture and associates’ interest and taxation, gain on disposal of available for sale investments, legacy UK retirement benefit scheme expenses, exceptional items and amortisation and impairment of acquisition related intangible assets.
4 Represents retail profit less finance costs excluding net interest on pension schemes.
There will be a presentation to analysts and institutions at 09:30 today at UBS, 1 Finsbury Avenue, London, EC2M 2PP. A live video and audio webcast of the event will be available via our website www.dartygroup.com, and recorded for access later in the day. Darty plc will issue an Interim Management Statement on 18 February 2016 for the third quarter trading period of 1 November 2015 to 31 January 2016.

Enquiries

Analysts:
Darty plc
Simon Ward
+44 (0) 20 7269 1400

Media
UK
RLM Finsbury
Jenny Davey
+44 (0) 20 7251 3801

France
Le Public Système
Ségolène de Saint Martin
+33 1 41 34 23 31 / +33 6 16 40 90 73

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.

Download Statement of Results for the six months ended 31 October 2015

SOURCE: Darty plc

Darty Q1 Trading Statement: Continued market outperformance in France and improving cash position

Continued market outperformance in France and improving cash position

LONDON, 2015-9-10 — /EPR Retail News/ — Darty plc today announces first quarter trading for the period 1 May 2015 to 31 July 2015, based on unaudited management accounts.

Summary

  • Successful summer sales and excellent growth in white goods
  • Continued market outperformance in France with like-for-like sales up 1.1 per cent and in Belgium with a return to positive like-for-like sales
  • Focus on working capital delivered a €65 million year on year reduction in net debt at the end of July
  • Improvement in underlying gross margin in this quarter; up 30 basis points for the Group and 60 basis points in France
  • Netherlands impacted by new warehouse systems implementation, impacting product availability, with a double digit decline in like-for-like sales
  • Mistergooddeal.com integration into Darty completed, with an expected continued negative impact on sales performance. On track to be approaching break even this financial year
  • Vanden Borre to open up to 50 franchise kitchen stores in Belgium. First store to open in the first half of 2016

Q1 revenue change (3 months to 31 July)

Total Like-for-like*
France (0.4)% 1.1%
Belgium and the Netherlands 0.5% (5.0)%
Total (0.2)% (0.3)%

* excluding Mistergooddeal.com

Régis Schultz, Chief Executive, commented:

“We continued to outperform the market in France with Darty’s total revenue up 2.4 per cent and like-for-like sales up 1.1 per cent, and Belgium delivered a positive like-for-like sales performance. We performed very well in the summer sales and maximised the benefit from the warm weather with strong white goods sales, off-setting the anticipated weak vision sales compared to the World Cup campaign of last year. Our market leadership position and leading customer services offer continued to benefit our customers, enabling us to be first to market with Windows 10 products.

“Whilst our markets remain challenging, particularly in multimedia, we were well prepared for the “back to school” period with better product availability than last year and we are now seeing strong vision sales ahead of the rugby World Cup. With trading momentum in France, continuation of our growth and cost initiatives plus an improving average cash position we are well placed for the rest of the year.”

Continuing Group

Total Group revenue was up 2.0 per cent and down 0.2 per cent including Mistergooddeal.com. Like-for-like sales fell by 0.3 per cent and by 2.5 per cent including Mistergooddeal.com. We saw strong sales in white goods, benefitting from weather related purchases of refrigeration and air conditioning products, and further strong growth in Communication. As expected, Vision sales declined against a successful football World Cup campaign last year and the multimedia market remained weak, with the introduction of Windows 10 only occurring at the end of the period.

Our web-generated sales continued to grow, up over 13 per cent excluding Mistergooddeal.com, now representing over 16 per cent of total product sales. Group gross margin saw an improving trend and was broadly flat for the period, including a positive impact of around 30 basis points from Mistergooddeal.com and a dilutive impact of around 60 basis points from the franchise business.

France

Darty continued to outperform the market, with total revenue up 2.4 per cent and like-for-like sales up 1.1 per cent, excluding Mistergooddeal.com. In addition to the warm weather benefit to white goods demand, the summer sale was a success with revenue from sale specific products nearly doubling compared to last year.

Darty’s web-generated sales grew nearly 10 per cent to over 16 per cent of total product sales. This was driven by strong growth in click and collect sales, which increased from 16 per cent to 27 per cent of web sales. Overall gross margin for France was up 20 basis points, with underlying gross margin up around 60 basis points. This reflected a positive mix effect from the strong sale of white goods, with Mistergooddeal.com having a positive impact of around 40 basis points and the franchise business having a dilutive impact of around 80 basis points.

The integration of Mistergooddeal.com into the main Darty operations was completed as planned during the period with an expected continued negative impact on sales performance, albeit on an improving trend. We saw an improvement in gross margin as we rationalised the product range and introduced our own sourced products. We are on track to be approaching break even this financial year as planned.

Belgium and the Netherlands

At Vanden Borre in Belgium and BCC in the Netherlands overall revenue was up 0.5 per cent and like-for-like sales were down 5.0 per cent. Web-generated sales continued to grow strongly, up over 32 per cent, to over 14 per cent of total product sales. Overall gross margin was down 50 basis points.

Vanden Borre saw a return to positive like-for-like sales, with enhanced delivery options continuing to improve web sales, but saw some gross margin pressure from competitive market conditions. In partnership with European leader, FBD, Vanden Borre is to create a franchised network of around 50 Vanden Borre kitchen stores. The first store will open in the first half of 2016.

Gross margin continued to improve at BCC, but revenue declined due to major disruption from the implementation of a new warehouse system, which impacted product availability. As a result, the first half retail loss at BCC is expected to be greater than last year.

Financial position

A cash enhancement programme was launched during the quarter with the aim of optimising working capital. Our objective is to reduce average net debt by around €50 million over the year. The programme is off to a good start with net debt already down by €65 million year on year at the end of July.

Restatement of financial statements for the six months ended 30 October 2014

Two accounting treatments are possible for the business tax, CVAE (Cotisation sur la Valeur Ajoutée des Entreprises) – either as an operating expense or as income tax. In line with the treatment adopted by French retail listed peers the decision was taken to reclassify from an operational expense in the retail profit of the France reported segment, to income tax. CVAE was €5.3 million for the six months ended 31 October 2014.

In addition, having reviewed possible treatments under IAS19 Revised, retirement benefit scheme expenses of €0.7 million relating to the legacy UK pension scheme have been reclassified from finance costs to operating profit in line with most common practice. These costs have been reclassified as an operating cost, outside of retail profit, as they relate to Comet, a discontinued business.

Both the CVAE and IAS19 adjustments were first made for the last financial year for the 12 months to 30 April 2015.

In addition a new adjustment has been made relating to IFRIC21 (Levies). This clarifies that the triggering event for the recognition of a liability for levies (i.e. miscellaneous taxes, duties and other levies not within the scope of IAS 12) is determined by reference to the terms of the relevant legislation, regardless of the period used as the basis of calculation the levy. Consequently, a liability for payment of a levy cannot be recognised progressively in the interim financial statements if there is no present obligation at the interim reporting date. This interpretation has resulted in a €7.2 million benefit to the total operating profit for the six months to 31 October 2014, with an equal reduction to the total operating profit for the six months to 30 April 2015, and hence no impact on the total operating profit for the 12 months to 30 April 2015.

All three adjustments are expected to be of a similar amount for the six months ended 31 October 2015.

Restatement of the Group income statement for the six months ended 31 October 2014 is attached as an appendix to this announcement.

There will be a telephone conference call for analysts at 08.00 on 10 September 2015. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00. Replay dial-in number: +44 (0) 20 8196 1998, Access Pin: 3613079#.

The Group will issue its Half Year Results on Thursday 10 December 2015.

 

Enquiries

Analysts
Darty plc
Simon Ward
+44 (0) 20 7269 1400

Media
UK
RLM Finsbury
Jenny Davey
+44 (0) 20 7251 3801

France
Le Public Système
Ségolène de Saint Martin
+33 1 41 34 23 31

 

About Darty plc
Darty group is a leading multi-channel service led electrical retailer operating over 400 stores and websites in three European countries. It generated an annual turnover of over €3.5 billion in 2014/15 through its operations of Darty and Mistergooddeal.com in France, Vanden Borre in Belgium and BCC in the Netherlands. 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 NYSE Euronext Paris.

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.

SOURCE: Darty plc

Darty plc announces total group revenue up 2.4% in its Interim Management Statement for the period 1 November 2014 to date

LONDON, 2015-2-13 — /EPR Retail News/ — Total Group revenue up 2.4 per cent. Further market share gain in France in challenging market conditions.

Darty plc today announces an Interim Management Statement for the period 1 November 2014 to date. Financial information is for the Continuing Group for the third quarter period from 1 November 2014 to 31 January 2015, based on unaudited management accounts.

Summary

  • Total Group revenue up 2.4 per cent; like-for-like sales down 2.9 per cent against a strong performance last year, a weaker than anticipated Multi-media market over peak, and the events in Paris in early January
  • Continued market outperformance by Darty in France in a market which reflects weak consumer confidence
  • Strong growth of nearly 10 per cent in like-for-like web-generated sales driven by a significant increase in click and collect
  • Underlying Group gross margin down around 90 basis points with product mix benefits more than off-set by the competitive market environment
  • 11 further franchise stores opened in France in the period, to total 34. Total franchise sales up significantly over the period
  • Completed the acquisition of 17 profitable stores for BCC as we build a leading multi-channel retailer in the Netherlands

Q3 year-on-year revenue change (3 months to 31 January)

Total Like-for-like
France 3.4% (3.0)%
Belgium and the Netherlands (1.6)% (2.3)%
Total 2.4% (2.9)%

 

Régis Schultz, Chief Executive, commented:

“Darty again outperformed the market and we saw total revenue grow thanks to our strategic initiatives. The market however remains challenging with weak consumer confidence. We were well prepared for the peak season, performed well over the Black Friday weekend and saw double digit growth in web sales, driven by a significant increase in click and collect, demonstrating the customer appeal of our multi-channel offer. Against a strong performance last year our overall sales in the period reflected a weaker than expected Tablet and Digital Camera market, which more than offset growth across other categories, and the impact of the events in Paris in early January.We have further strengthened our market positions in the period adding 11 new franchisees in France and completed the acquisition of 17 profitable stores in the Netherlands.In the near term we expect our markets to remain challenging and we continue to remain focused on improving productivity in our cost base and developing our growth initiatives.”

Continuing Group

Total Group revenue was up 2.4 per cent including Mistergooddeal.com and franchise stores. Like-for-like sales declined 2.9 per cent against a strong performance in the prior year. We continued to see good growth in Communications and progression in White Goods, and the rate of decline in Vision slowed compared to last year with strong growth in the new technologies/larger screen sizes. Net growth across these categories was more than off-set by a decline in Multi-media due to both falling volumes and average selling prices for Tablets and a weaker Digital Camera market. Our web-generated sales saw strong growth of nearly 10 per cent, and including Mistergooddeal.com, were up nearly 25 per cent to represent over 16 per cent of total product sales. Underlying Group gross margin was down around 90 basis points, with ongoing market pressures more than off-setting product mix benefits and excluding the dilutive mix impact of around 70 basis points in total from Mistergooddeal.com and the franchise business.

France

Darty outperformed the market, with total revenue up 3.4 per cent including Mistergooddeal.com and the franchise business, but saw like-for-like sales fall 3.0 per cent against a strong performance last year and a significant decline in footfall during the events in Paris in early January at the beginning of the sales period. Overall web-generated sales continued to grow, to nearly 15 per cent of total product sales, and nearly 18 per cent including Mistergooddeal.com. Darty.com sales grew by nearly 8 per cent with our multi-channel click and collect offer proving increasingly popular with 30 per cent of all web sales collected in store during December and a record number of visits to the site on the first day of the January sale.

Underlying gross margin was down around 100 basis points excluding the dilutive mix impact from Mistergooddeal.com and the franchise business, with the competitive market environment more than off-setting expected product mix benefits.

During the period our multi-channel specialist proposition received the LSA award for Click and Collect, the FEVAD Gold award for the best technical products web site and the “Coup de Coeur de la Rédaction” award for customer knowledge.

The sales performance of the franchise stores remains very encouraging with significant sales uplifts in the period and we opened a further 11 stores during the period, giving a total of 34 franchise stores in France.

Our focus at Mistergooddeal.com is on the integration with Darty, with the majority of the central functions merged in January. In an on-line market that remains very competitive, our focus on completing the integration will continue to have an impact on short-term performance.

Belgium and the Netherlands

At Vanden Borre in Belgium and BCC in the Netherlands overall revenue was down 1.6 per cent, and down 2.3 per cent on a like-for-like basis. Web-generated sales continued to grow, up over 18 per cent, to over 12 per cent of total product sales. Overall gross margin was down around 20 basis points.

Against a very strong performance last year Vanden Borre saw a decline in like-for-like sales despite a good performance during the January sales period, with trading impacted by a weak Multi-media market and a number of national strikes in December. BCC continued to see positive like-for-like sales.

The acquisition of 17 profitable stores from HiM Retail was completed on 2 February with the rebranding to BCC planned on a phased basis over the next few months. BCC now has 75 stores making it the leading multi-channel electrical retailer in its market.

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 31 October 2014 balance sheet date.

Store numbers as at 31 January

 

Store numbers
2015 2014
 France 228 226
 Franchises 34
Total France 262 226
Belgium and the Netherlands 118 116
Overseas franchises 3
Group Total 383 342

 

There will be a telephone conference call for analysts at 08:00 on 12 February 2015. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00. Replay dial-in number: +44 (0) 20 350 6902, Access Pin: 4873126.

The Group will issue its Full Year Results on Thursday 18 June 2015.

Enquiries

Analysts

Darty plc
Simon Ward +44 (0) 20 7269 1400

Media

UK
RLM Finsbury
Rollo Head   +44 (0) 20 7251 3801
Jenny Davey

France
Le Public Système
Ségolène de Saint Martin +33 1 41 34 22 06

About Darty plc
Darty group is a leading multi-channel service led electrical retailer operating over 380 stores in three European countries. It generated an annual turnover of nearly €3.5 billion in 2013/14 through operations in Darty in France, Vanden Borre in Belgium and BCC in the Netherlands. 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 NYSE Euronext Paris.

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.

Darty plc announces Interim Management Statement for the period from 1 May 2014 to date

LONDON, 2014-9-11 — /EPR Retail News/ — Darty plc today announces an Interim Management Statement for the period 1 May 2014 to date. Financial information is for the Continuing Group (excluding Datart) for the first quarter period from 1 May 2014 to 31 July 2014, based on unaudited management accounts.

  • ‘4Ds’ plan to Drive trading, Digitalise Darty, Develop the brand and Deliver cost efficiency
    • Successful World Cup and summer sales campaigns with total revenue up 5.9 per cent and up 1.7 per cent on a like-for-like basis
    • Continued market outperformance in France and share gains in the Netherlands
    • Overall underlying Group gross margin was down 60 basis points, in line with our expectations
  • Further strengthening of Darty’s leadership position in France through:
    • the opening of a further nine franchise stores in the period, taking the total to 13 as we expand into smaller catchment areas, and continued significant sales uplifts
    • the roll-out of Mistergooddeal.com’s collection network to Darty stores
  • Completed the process of focusing the Group on its core businesses with the completion of the agreement to sell its majority shareholding in Datart

Q1 revenue change (3 months to 31 July)

Total Like-for-like
France 7.1% 2.0%
Belgium and the Netherlands 1.7% 0.7%
Total 5.9% 1.7%

 

Régis Schultz, Chief Executive, commented:

“During the quarter we continued to see the benefits of our ‘4Ds’ plan to Drive trading, Digitalise Darty, Develop the brand and Deliver cost savings. We gained further market share and benefitted from very positive Vision sales ahead of the football World Cup. We built on our leadership position in France with continued strong performance as we roll out our franchise opening programme and the use of Darty’s infrastructure for Mistergooddeal.com to increase our share of the low price/low service segment of the market. While we are cautious in our view of the markets, our plans for the peak period put us in a good competitive position for the coming months.”

Continuing Group

Like-for-like sales were up 1.7 per cent and total Group revenue was up 5.9 per cent including Mistergooddeal.com and franchise stores. We saw strong sales in Vision, particularly in May and June reflecting a successful football World Cup campaign and further growth in Communication. White Goods were stable, not benefitting to the same extent as last year from weather related purchases of refrigeration and air conditioning products. We saw a decline in Multi-media due to slowing volume growth and declining average selling prices for Tablets and a poor Digital Camera market. Our web-generated sales continued to grow, and including Mistergooddeal.com were up nearly 27 per cent, now representing over 16 per cent of total product sales. Group gross margin was down 60 basis points reflecting both mix and rate factors and excluding the dilutive impact of both Mistergooddeal.com and the franchise business which each represented around a further 30 basis point dilutive impact on total Group gross margin.

France

Darty again outperformed the market for the period, with like-for-like sales up 2.0 per cent and total revenue up 7.1 per cent including Mistergooddeal.com and the franchise business. We were pleased with the customer response to the July sale, but a cooler summer led to lower White Goods sales in the period. Overall web-generated sales continued to grow, albeit in a slower market, to nearly 15 per cent of total product sales, and nearly 18 per cent including Mistergooddeal.com. Underlying gross margin was down 70 basis points excluding the dilutive impact from Mistergoodeal.com and the franchise business, reflecting the mix effect of continued growth in Communications and lower White Goods sales as well as competitive market conditions.

The performance of the first franchise stores is very encouraging with significant sales uplifts and we opened a further nine during the period, giving a total of 13 franchise stores.

In a very competitive on-line market, initial trading at Mistergooddeal.com has been weaker than expected. This, together with a revised integration timetable, will result in a full year retail loss approximately €5 million higher than previously anticipated. Nevertheless our overall integration plan remains on track and we remain confident these plans will improve performance. These plans include common sourcing and specific ranges that have been introduced to the offer and over half of Darty’s stores can now be used as customer collection points, already representing over a quarter of all collections.

Belgium and the Netherlands

At Vanden Borre in Belgium and BCC in the Netherlands overall revenue was up 1.7 per cent, and up 0.7 per cent on a like-for-like basis. Web-generated sales continued to grow, up over 7 per cent, to 11 per cent of total product sales. Overall gross margin was up 30 basis points.

With a new management team in place, BCC saw a further improvement in performance, first seen at the end of last year with positive like-for-like sales, market share gains in most product categories and an improvement in gross margin. Vanden Borre focused trading on margin, which saw a strong improvement, with some impact on revenue against a strong performance last year.

Discontinued operation – Datart

As announced on 7 August 2014, the Group completed an agreement to sell its 60 per cent shareholding in Datart International, in a deal valued at €5 million.

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 2014 balance sheet date.

Store numbers as at 31 July 2014

 

2014 2013
France 226 226
Belgium and the Netherlands 117 116
343 342
Franchise stores 13*
Total groupe 356 342

*Includes 11 stores in France and 2 overseas

There will be a telephone conference call for analysts at 08:00 on 11 September 2014. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00. Replay dial-in number: +44 (0) 20 8196 1998, Access Pin: 8419957.

The Group will issue its Half Year Results on Thursday 11 December 2014.

Enquiries

Analysts

Darty plc
Simon Ward +44 (0) 20 7269 1400

Media

UK
RLM Finsbury
Jenny Davey +44 (0) 20 7251 3801

France
Le Public Système
Ségolène de Saint Martin +33 1 41 34 23 31

About Darty plc
Darty group is a leading multi-channel service led electrical retailer operating over 340 stores in three European countries. It generated an annual turnover of nearly €3.5 billion in 2013/14 through operations in Darty in France, Vanden Borre in Belgium and BCC in the Netherlands. 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 NYSE Euronext Paris.

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.