Topps Tiles enjoys bumper sales after pandemic boom

Topps Tiles expects full year profits to come in at the high end of market forecasts after another record year of selling.

In an update for the 52 weeks to October 1, the retailer said group sales were around £247.3m, up 10.6 percent from a year ago.

Group sales in the 13 weeks to October 1 were up 4.3 percent, with positive progress across the company.

Topps Tiles Stocks rose today, rising 3.36 percent or 1.38p to 42.38p in late morning trading, after falling more than 32 percent in the past year.

Topps Tiles said it continues to perform well compared to a strong comparable period last year.

Comparable store sales declined 1.2 percent year-over-year in the last quarter, with the underlying comparable store sales trend being similar to that seen in the third quarter update. For the full year, organic sales growth was 9.4 percent.

Topps said average weekly sales per store were 25 percent higher than in the pre-pandemic period of FY19.

About half of this growth was due to the transfer of closed store sales as it rationalized its store network and improved store sales density, with the remainder due to underlying sales growth, including a particularly strong trade turnover.

Boss Rob Parker said: “We are pleased to have achieved record sales for the group for the second year in a row, with earnings expected to be at the high end of market expectations. All parts of the group contributed to this achievement and are making good strategic progress in the development and diversification of the company.

“Our market-leading omnichannel retail business, Topps Tiles, has performed well against strong comparisons from last year and we continue to grow our loyal merchant customer base.

“The Group has worked hard to deliver a strong balance sheet with positive net cash flow and this will serve us well as we enter a period of macroeconomic volatility, leading to a more uncertain environment for consumers.”

Victoria Scholar, Head of Investments at Interactive Investor said: “This is an extension of last quarter’s positivity with further encouraging sales figures given the challenging macroeconomic backdrop.

The retailer has successfully rationalized its store network this year, coping with the headwinds of inflation, supply chain problems and the cost of living crisis. Shares in Topps Tiles have lost more than a third of their value so far this year, but have recovered from the low of 2022.”

Dudley Shanley, an equity analyst at Goodbody, said: “Amid growing industry uncertainty as we move into 2023, these are a reassuring set of results for the Group, which continues to focus on meeting its target of gaining market share. of 20 percent by 2025.’