The London-listed Topps Tiles Group has seen sales drop year-on-year as it says demand for big-ticket home projects remains low amid a “challenging” macroenvironment.
The Manchester-headquartered company’s total group sales – which include those within its retail brand of the same name plus its commercial supplier arms – were down 6.9 per cent during the 39-week period ended June 29, 2024, than in the same period the year before, with Topps estimating that the UK tile market was down 10-15 per cent year-on-year.
Sales by its consumer retail brand Topps Tiles were down 9.7 per cent year-on-year, similar to the 9.2 per cent decline it saw in its first half, as it said demand remained lower among homeowners than its trade customers.
Its online sales continued to perform well with “significant year-on-year sales growth” despite “challenging” trading conditions in the commercial market.
In a statement published today, Topps Tiles said: “The trading environment in the period was broadly unchanged from that described in the group’s interim results on 21 May 2024.
“Market conditions have remained challenging overall, with subdued demand in the domestic repair, maintenance and improvement sector, especially for bigger ticket projects.
“Online pure play continues to perform well with significant year-on-year sales growth as the group continues to grow market share.”
The statement by the group also noted how “challenging” trading conditions in the commercial market have been. However, it added that “Parkside remains in a marginally profitable position year to date following the restructuring actions taken last year”.
“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, and the group is well-positioned to benefit from this due to its growing market share, leading brands, specialist expertise and world-class service, underpinned by its strong balance sheet,” Top Tiles said.
Topps Tiles has had a challenging couple of years after reporting record revenue in the 53 weeks ended October 2, 2021.