Topps Tiles first quarter LFL sales slip to 7.1%

Topps Tiles has reported that in the 13 weeks to 30 December, like-for-like sales were down 7.1%, continuing the trend seen in the first eight weeks, with sales to trade customers “more resilient” than those to homeowners.

According to Topps Tiles, trading in the first quarter reflected the “ongoing challenges to discretionary consumer spending”, particularly those impacting on businesses serving the repair, maintenance and improvement (“RMI”) sector.

It also revealed that its group sales in the 13 weeks ended 30 December were 4.0% lower year-on-year.

However, it said trading remains strong in Online Pure Play, with significant year-on-year sales growth, led by Pro Tiler Tools.

Its Parkside commercial business is also performing in line with its expectations and is profitable in the year to date.

Additionally, Topps Tiles stated that the group’s cost base remains “well controlled”, despite ongoing inflationary pressures, and cash flow remains strong.

Looking ahead, it expects the group’s profits in 2024 to be weighted towards the second half.

Topps Tiles said: “The group remains well-positioned to respond to market conditions and we expect to have gained further market share in the first quarter, driven by our world-class customer service, market-leading brands and specialist expertise, and supported by our strong balance sheet. We remain excited about the opportunities for Topps Group over the medium term.”