Topps Tiles reports record £263m sales as retailer shrugs off year of soaring inflation
Topps Tiles reported a record year of sales, outstripping pre-Covid figures as it shrugged off inflation and a slowdown in the market for housing repairs.
Group sales were approximately £263m for the 52 weeks ending at the end of September, an increase of 6.4 per cent year-on-year and now more than £40m higher than in 2019.
Shares jumped nearly 4 per cent in early trading.
The Manchester retailer said it expects its market share to increase significantly in its full year results as it “moves rapidly” towards an early delivery of its ‘1 in 5’ goal – to account for £1 in every £5 spent on tiles and associated products in the UK by 2025.
Profit is forecast to be in line with market expectations.
Rob Parker, Topps Tiles CEO, said “we are delighted to have delivered a third consecutive year of record sales in Topps Group, having increased our sales by over £40 million since the pre-pandemic period, reflecting the significant development and diversification of the Group over that time”
Parker remained bullish despite a “slowing” housing repairs, maintenance and improvement (RMI) market, noting that the businesses strong balance sheet should enable further sales growth “profitability and cash generation in the years ahead.”
Topps Tiles, which has 300 sites across the UK, has posted resilient performances this year in a difficult market, as retailers grapple with inflationary pressures and the rising cost of shipping goods.
Shares in the home supplies retailer soared in May after it reported record earnings in the first half of the year and today’s sales result marks the third consecutive record breaking year.
But the recent slowdown in the housing market has threatened to dampen profits, with Topps warning today of “moderated growth in the final quarter,” reflecting weakness in new build housing and private housing RMI.
The retailers shares are up 17 per cent in the year to date.
Russell Pointon, director of content, consumer and media at Edison Group, said “Topps Tiles has reported a very reassuring trading update for the year to the end of September 2023, with a third consecutive year of record revenue and management indicated that profit will be in line with market expectations.”
“Whilst the market has undoubtedly become more challenging, the strong relative growth gives management confidence that there has been very good progress towards the early delivery of its ‘1 in 5 by 2025’ market share goal.”