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Topps Tiles PLC on Thursday said its results had been hampered by a trend of low discretionary spending. Sales in the 13 weeks to December 30 were down by 4.0% year-on-year for the Leicester-based tile retailer. Topp’s like-for-like sales were also down 7.1% year-on-year in the quarter. The group attributed the disappointing results to ‘ongoing challenges to discretionary consumer spending’, which it claims have impacted the repair, maintenance and improvement sector in particular. The group said that trading remains strong for its online Pure Play tile retailer, with ‘significant’ sales growth led by Pro Tiler Tools. Topps said that its cost base remains ‘well controlled’ and cash flow remains strong in spite of inflationary pressures. The group’s profit in 2024 will be second half-weighted, due to the timing of holiday pay accrual, high energy usage and trading in the first half of the year. Topps 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’. Shares in Topps Tiles were down 6.7% at 46.38 pence each in London on Thursday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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