Travis Perkins maintains guidance but Q3 retail sales weak

17th Oct 2013 07:14

- Full-year earnings guidance maintained- General, Specialist Merchanting buoys Q3- Consumer LFL sales deteriorate Travis Perkins, the FTSE 100 builders merchant, reported 'encouraging' sales momentum in the third quarter despite challenging conditions in retail markets. Total sales improved by 8.6% in the three months to September 30th, with like-for-like sales growing 6.3%. This represented a strong pick-up from the 1.6% top-line growth (+0.9% LFL) in the first half.The General and Specialist Merchanting divisions reported strong LFL growth of 10.7% and 10.6%, respectively, while the Plumbing & Heating unit increased LFL sales by 5%.However, LFL sales in the Consumer division were flat on last year, well below the 8.6% growth recorded in the two months to June 30th. The company said that its Wickes and Tile Giant chains received "little benefit" from the warmer summer weather given their "limited range in outdoor categories".Nevertheless, the company still maintained its guidance for full-year earnings per share of around 100p, slightly below the 108.9p earned in 2012.Chief Executive Geoff Cooper said that the recovery in activity, which started earlier this year, "looks set to continue into 2014 as owners' and occupiers' construction and maintenance activity increases from the very low levels encountered over the last five years".