Topps Tiles posts drop in sales and profit as it announces new growth strategy
Topps Tiles has said its sales fell by 5.8% to £122.8 million in its first half as trading remained “challenging”.
In the six months to 30 March, adjusted pre-tax profit was also down, falling by 29.5% to £3.1 million.
On a statutory basis, the retailer reported a loss of £1.5 million compared to the previous year’s profit of £1.7 million.
Despite the drop in sales and profit, Topps said it continued to take market share and has announced that it has embarked on a new growth strategy.
Rob Parker, Topps Tiles chief executive, said: “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019. Against this backdrop, we are continuing to take market share, our online pure play businesses are growing strongly and the group remains in a robust financial position.”
Giving an update on trading in the first seven weeks of the second half, Topps said group sales were 7.3% lower year-on-year.
Looking ahead, Parker said: “Lead indicators of market activity such as mortgage approvals, consumer confidence and smaller ticket DIY spend are improving, and while we are yet to see this feed through into our customer’s spending patterns, as market leader Topps Group remains well-positioned for recovery.
“Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.”
