Topps Tiles sales hit by weaker demand
Topps Tiles has posted a 5.9% drop in first-half sales to £122.6 million as homeowners continue to delay major home improvement projects.
In the 26 weeks to 30 March, the tile retailer experienced lower footfall due to subdued demand in the domestic repair, maintenance and improvement (RMI) sector, especially for bigger ticket projects. This led to like-for-like sales being down 11.3% in the retailer’s second quarter.
Topps Tiles said trading in its online businesses Pro Tiler and Tile Warehouse remained strong with year-on-year sales growth of 38.3% over the first half. The group will soon be completing the acquisition of the remaining 40% shareholding in Pro Tiler that it does not already own and said it was pleased that the co-founders will be remaining with the business.
The retailer said first half profitability across will be impacted factors such as the weaker market, the timing of the holiday pay accrual and seasonally higher energy usage in the period. It continues to expect that its profits in 2024 to be weighted towards the second half.
Looking ahead, Topps Tiles said: “With its market leading brands, specialist expertise and world-class service, the group is well positioned to benefit from a cyclical recovery in the RMI market.
“The business remains in a strong financial position, with a robust balance sheet, and is focused on maximising market opportunities and emerging in a stronger competitive position as the market improves.”
