United Kingdom: Topps Tiles, Britain’s largest tile retailer, reported a 0.1% decline in annual like-for-like sales, as weak construction activity, higher building and energy costs, and cautious consumer spending weighed on demand.
Why Did Sales Decline?
The company said subdued UK construction activity affected demand for building products during the year ended September 26. Sales were also hit as customers reduced construction work during the summer heatwave.
Did Sales Recover in September?
Topps Tiles said like-for-like sales increased in September, following measures to improve performance. These included closing underperforming stores and streamlining the business.
What Are the Profit Expectations?
The company expects annual adjusted pre-tax profit to be broadly in line with analyst consensus of £6.6 million. Annual group revenue, excluding stores acquired through the CTD transaction, increased by around 0.7%.
How Have Investors Responded?
Topps Tiles shares have risen by more than 8% this week, supported by expectations that planned UK measures for first-time buyers could encourage stronger housing and construction activity.