Topps Tiles issues profit warning following margin pressures
Topps Tiles has warned on profit after facing margin pressures due to ongoing macroeconomic uncertainty and the impact of recent heatwaves.
The group has also reported that revenue declined by 1.8% to £75.6 million in its third quarter, with like-for-like sales remaining flat as it faced “challenging” market conditions.
Subscribe to TRBWhile its Topps Tiles business continued to outperform the wider market, its performance was lower than forecast.
The group added that ongoing macroeconomic uncertainty had led to increased demand from shoppers for lower priced products, putting pressure on margins. The business was also affected by temporary work stoppages among housebuilders and traders during the period’s hot weather.
As a result, Topps Tiles Group now expects its full year adjusted pre-tax profit to come in above £6.5 million, which is a sharp decline on the previous year’s £9.2 million. However, it remains confident in the delivery of its medium-term ambitions, including its Mission 365 priorities.
Alex Jensen, chief executive of Topps Tiles Group, said: “Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products.
“We’re making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth. In the short term, the macro-economic environment continues to remain challenging.”
