Topps Tiles cautions over sliding sales as annual profits slump

November 27, 2023 10:14 PM GMT | By PAMEDIA
Follow us on Google News:

Retailer Topps Tiles has seen annual profits tumble by more than a third and warned over weaker recent trading amid a housing market slowdown and consumer spending woes.

The tile chain reported a 38% plunge in pre-tax profits to £6.8 million for the year to September 30 as soaring costs offset a 6.3% rise in group revenues.

Its main Topps Tiles brand saw comparable store sales lift 3.1% over the year.

The group cautioned over a “weakening of discretionary consumer spending” that is impacting trading so far in its new financial year, with like-for-like Topps Tiles sales down 6.1% in the first eight weeks.

Overall group sales are 3% lower in the two months, it added.

Topps said: “Trading in the early weeks of the new financial year has reflected the well-documented challenges to discretionary consumer spending, especially RMI (renovation, maintenance and improvement), including higher interest rates and prolonged high inflation, falling house prices and lower housing transactions.

“In particular, since the end of the summer, the market has been subdued, with a softer build into the usual seasonal peak trading period, as noted in a variety of corporate and macroeconomic reporting.”

The group’s annual results showed the impact of soaring costs on its bottom line, though it said these pressures “began to abate” in the second half.

It has been trimming its store estate and driving savings across the business to help offset cost increases.

Rob Parker, chief executive of Topps Tiles, said: “As we enter our new financial year, it is clear that there has been a weakening of discretionary consumer spending.

“The business is well positioned to deal with this period, our established brands are market leading, we are competitively advantaged and we are confident that we will continue to take market share.”


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top LSE Listed Companies