REG - Topps Tiles - Q3 Trading Update

Topps TilesAnnouncement

03/07/2024 07:00

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RNS Number : 8763U  Topps Tiles PLC  03 July 2024

 

3 July 2024

Topps Tiles Plc

 

Q3 Trading Update

 

 

Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile
specialist, announces a trading update for the 39-week period ended 29 June
2024.

 

The trading environment in the period was broadly unchanged from that
described in the Group's Interim Results on 21 May 2024. Total Group sales in
the third quarter were 6.9% lower year-on-year, and in the 39-week period,
Group sales were 6.2% lower than the prior year.  As stated in the Interim
Results, we believe that the UK tile market is down 10-15% year-on-year, with
the Group continuing to take market share.

 

Market conditions have remained challenging overall, with subdued demand in
the domestic Repair, Maintenance and Improvement ("RMI") sector, especially
for bigger ticket projects. Like-for-like sales(1) in Topps Tiles were 9.7%
lower year-on-year in the third quarter, similar to the 9.2% decline seen in
the first half, however sales levels in Topps Tiles stabilised through the
quarter. Sales to trade customers continued to be more resilient than sales to
homeowners.

 

Online Pure Play continues to perform well with significant year-on-year sales
growth as the Group continues to grow market share. Trading conditions in the
commercial market are challenging although 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.
However, with this recovery yet to feed through into our end markets, the
Group is progressing the self-help opportunities described in the Interim
Results statement as part of its 'Mission 365' goal.  Work on the delivery of
these plans, which will deliver significant medium-term benefits to both sales
and profits, is continuing at pace, and further updates will be provided in
future statements.

 

Notes:

(1) Topps Tiles like-for-like sales is defined as online sales and sales from
Topps Tiles stores that have been trading for more than 52 weeks.

 

For further information please contact:

 

 Topps Tiles Plc
 Rob Parker, CEO         0116 282 8000

 Stephen Hopson, CFO
 Citigate Dewe Rogerson
 Kevin Smith             020 7638 9571

 Ellen Wilton

 

 

 

Notes to Editors

 

Topps Tiles Plc is the UK's largest specialist supplier of tiles and
associated products, targeting the UK domestic and commercial markets and
serving homeowners, trade customers, architects, designers and contractors
from 302 nationwide Topps Tiles stores, a commercial showroom in London and
eight customer-facing websites: www.toppstiles.co.uk
(http://www.toppstiles.co.uk) , www.parkside.co.uk (http://www.parkside.co.uk)
, www.protilertools.co.uk (http://www.protilertools.co.uk) ,
www.northantstools.co.uk (http://www.northantstools.co.uk) ,
www.premiumtiletrim.co.uk (http://www.premiumtiletrim.co.uk) ,
www.warmfloorstore.co.uk (http://www.warmfloorstore.co.uk)
www.flooringmaterials.co.uk (http://www.flooringmaterials.co.uk) and
www.tilewarehouse.co.uk (http://www.tilewarehouse.co.uk) .

 

Since opening its first store in 1963, Topps has maintained a simple operating
philosophy ‐ inspiring customers with unrivalled product choice and
providing exceptional levels of customer service.  For further information on
the Group, please visit www.toppsgroup.com (http://www.toppsgroup.com)

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