Crawshaw Group PLC Trading update (8838J)
September 15 2016 - 1:01AM
UK Regulatory
TIDMCRAW
RNS Number : 8838J
Crawshaw Group PLC
15 September 2016
15 September 2016
Crawshaw Group Plc
("Crawshaw" or "the Group")
Trading Update
At Crawshaw's AGM on 29 June 2016 it was announced that the
Group had, during the prior couple of weeks, experienced some
suppressed footfall patterns caused by a combination of the
international football, adverse weather and Brexit. These factors
persisted through to the end of the half year period, resulting in
a further reduction in like for like sales for the half year,
although this was partly mitigated again by a further strengthening
of gross margin. We expect to report on our half year results on 29
September 2016.
Outlook
Conditions have remained difficult in the weeks since the period
end but we are acting quickly to restore sales momentum and feel
that this can be achieved rapidly in readiness for the very
important winter and festive season.
Over the last year or so we have actively sought to rationalise
range, reduce the number of price-led promotions and drive higher
margin lines, and the strategy has worked well. However, with our
customers now being even more price focussed post Brexit, and with
the supermarkets very recently launching some aggressive meat
promotions, we are reacting to ensure we maintain the value-led
approach that has proved successful in the past. This includes
introducing more local choice and lower price point packs.
Whilst the same factors have impacted our new store sales
performance, the initiatives described above will clearly benefit
those stores as well. We are particularly pleased with our new
standalone factory outlet store format, which significantly
outperforms the high street format on every measure, as do our more
established three mature outlets. Fit out costs are lower per
square foot, property and running costs are very low, EBITDA
margins are excellent, and without a food to go element the
operation is even simpler to roll out.
Added to that, being out of town with parking, and therefore
more of a destination, factory outlet stores are not so dependent
upon local footfall. We are therefore currently reviewing our store
roll out strategy with a view to adding more of these types of
openings in our overall new store opening pipeline. We have one
further site at an advanced stage, and another in the pipeline.
We are confident our actions can restore sales momentum, and we
will be prepared to invest in margin to drive sales and sharpen our
value proposition. We are disappointed with current trading and
clearly the outlook for the full year will depend upon the result
of our actions, upon trading during the important peak winter and
festive season, and upon the timing of our store openings.
Enquiries:
Crawshaw Group plc
Noel Collett, Alan Richardson 01709 369 600
Peel Hunt LLP
Dan Webster, Adrian Trimmings, George Sellar 020 7418 8900
This announcement includes inside information
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