Topps Tiles boss retires after sale and enjoys celebratory bounce
Topps Tiles exceeded expectations in the final weeks of 2024 as the retailer made progress on efforts to boost professional sales.
The group followed three consecutive record years for earnings with a disappointing 2024, as poor consumer confidence and broader economic weakness saw profits almost halve in the year to September 28.
But Topps told investors on Wednesday that the group’s like-for-like sales were up 4.6 per cent year-on-year in the thirteen weeks to December 28, with growth of 12.9 per cent in the past five weeks.
The group attributed the gains over the period to “robust trading revenue growth” at both Topps Tiles and Pro Tiler Tools.
It came as Topps revealed the planned retirement of boss Rob Parker, who will step down at the end of 2025 after 18 years at the tile retailer once a replacement has been appointed.
The group said the total number of active registered merchants within the Topps Tiles business rose 7 percent annually to 141,000, with the number of new merchants registered in the quarter more than doubling year-on-year, both in-store and online .
Topps, which has just opened a new 140,000 sq ft warehouse in Northampton as a base for its Pro Tiler Tools unit, said trade growth was also supported by “developments in the Topps Tiles brand’s digital channels, clearer pricing and excellent stock availability ‘.
Topps has made progress in expanding its merchandise offering
The group also highlighted progress on its ‘mission 365’ plan, which also aims to improve the ‘digital commerce experience’, expand into new coverage categories and increase B2B sales focus.
Outgoing boss Parker said: ‘While it is still early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results, leaving us well positioned to deliver on our mission of Mission 365.’
Topps will hope strong Christmas trading will ease pressure from major investor MS Galleon, which has urged a change of approach as it warns the company is in “significant danger” of losing further market share to rivals.
Topps Tiles Stock rose 8 percent to 40.2 cents in early trading, cutting 12-month losses to 17 percent.
Analysts at Peel Hunt said they were “encouraged to see much stronger performance than we expected” but held off updating forecasts until Topps provided further guidance on performance in the new year.
Peel Hunt added: ‘Looking ahead, we believe Topps remains one of the stocks most focused on consumer recovery, although the group’s medium-term strategy is also largely driven by internal measures ranging from range expansion to new commercial markets.
“On the consumer front, even though we have yet to see any signs of recovery, we believe the worst is behind us, hoping that the recovery in trade represents a more positive trend than a one-off trend.”
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