Topps Tiles cautions over half-year profit hit as sales woes deepen

Retailer Topps Tiles has warned over a hit to first-half profits as under-pressure homeowners continue to put major home improvement projects on the back burner.

The group reported an 11.3% tumble in like-for-like sales in its second quarter to March 30.

It sees the group’s sales woes deepen, with the decline picking up pace since the 7.1% drop seen in the previous quarter, although Topps said the second-quarter performance was also impacted by the timing of Easter holidays this year.

The group said: “Subdued demand in the domestic repair, maintenance and improvement sector, especially for bigger ticket projects, has persisted into 2024, resulting in lower footfall into Topps Tiles stores.”

The firm cautioned that first-half profits would be impacted by a number of factors, including the weaker market and “seasonally higher energy usage”.

It reiterated that full-year profits are set to be weighted towards the second half of its financial year.

The update showed that overall revenues fell 5.9% in its first half, to £122.6 million.

Topps has seen trading ease back since enjoying record sales in its previous financial year as customers have tightened their belts due to high inflation and interest rates having been hiked to their highest level since 2008.

Topps said trade customers were still proving more resilient, though trade sales were also lower year on year in the first half.

Its online brands, such as Pro Tiler and Tile Warehouse, saw strong trading, with half-year sales up 38.3%.

Topps was founded in 1963 and now has 304 stores across the UK.