Topps Tiles sales fall amid challenging market conditions
Topps Tiles
40.00p
16:20 05/07/24
Topps Tiles on Wednesday said challenging market conditions had continued into the second half of its fiscal year, leading to a fall in sales.
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"Market conditions have remained challenging overall, with subdued demand in the domestic repair, maintenance and improvement sector, especially for bigger ticket projects," the company said in a third-quarter trading statement.
Total group sales in the 39 weeks to June 29 were 6.9% lower year-on-year, and down 6.2% in quarter. Like-for-like sales were 9.7% lower year-on-year, similar to the 9.2% decline seen in the first half, although sales levels stabilised through the quarter. Sales to trade customers continued to be more resilient than sales to homeowners.
“Positive macroeconomic data on inflation, real wage growth, improving consumer confidence and increased activity in the housing market provides some confidence in a cyclical recovery,” the company, which operates a 302-store chain, added.
However, with this recovery yet to feed through into end markets, the group was progressing the self-help opportunities, which it said would deliver “significant medium-term benefits to both sales and profits”.
Reporting by Frank Prenesti for Sharecast.com