Topps Tiles Q3 sales drop amid weaker macroeconomic conditions

Tile specialist Topps Tiles posted a drop in third-quarter sales amid weaker macroeconomic conditions.

In the 13 weeks to 1 July, like-for-like revenues fell 4.7% versus the same period a year ago, when the business benefitted from an increased level of housing transactions resulting from the Stamp Duty changes in April 2016.

Topps said it is now trading from 367 stores versus 348 last year, having opened a net nine stores in the quarter, and it expects to end the year with around 370.

Chief executive officer Matthew Williams said: "At the time of our interim results in May we pointed to a more challenging macroeconomic environment and this has persisted through the remainder of the third quarter. Tougher comparatives resulting from the changes to Stamp Duty in the prior year were a feature throughout the period and we have seen a modest improvement in trading over recent weeks as they have begun to ease.

"Against this background, we will continue to extend our market leadership position by focusing on our proven strategy of 'Out-Specialising the Specialists'. In particular, we continue to evaluate selective acquisition opportunities in the commercial segment of the UK tile market."

At 0915 BST, the shares were down 1.8% to 81.50p.