Topps Tiles has blamed lower footfall in stores and a slowdown in spending on big-ticket items for a slide in sales in the first half of the year.
Over the 26-week period to the end of March, Britain’s biggest seller of tiles reported a 5.9 per cent decline in total group sales year-on-year to £122.6m, while like-for-like sales were over 11.3 per cent lower.
However, Topps Tiles said its gross margin “was up year-on-year as cost of goods pressures continued to ease.”
On the other hand, the group said net profit were impacted by “lower volumes, operating cost inflation and the impact of operational gearing, despite strong cost control throughout the period”.
The group said it expects profit in 2024 to be “weighted towards the second half”.
Sales at its online business performed well, resulting in year-on-year sales growth of 38.3 per cent over the first half.
The group also said it will soon complete the acquisition of the remaining 40 per cent shareholding in fellow tile retailer Pro Tiler Limited following the end of the earn-out period.
The company 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, especially across the homeowner customer group.
“Group profitability in the first half of the year will be impacted by a number of factors including the weaker market, the timing of the holiday pay accrual and seasonally higher energy usage in the period.”
It added: “The business remains in a strong financial position, with a robust balance sheet, and is focused on maximising market opportunities and emerging in a stronger competitive position as the market improves. The group plans to discuss its new goal and future profit growth opportunities at the Interim Results on 21 May 2024.”