Topps Tiles boosts profit expectations as it enjoys second successive year of record sales after pandemic boom
- Topps Tiles saw its group sales rise by over 19% in the past year, figures show
- Retailer’s share price on the up today, but shares are down over 30% for the year
Topps Tiles expects full-year profits to come in at the upper end of market forecasts after enjoying another record year of sales.
In an update for the 52 weeks to 1 October, the retailer said group sales came in at around £247.3million, up 10.6 per cent on a year ago.
Group sales in the 13 weeks to 1 October were 4.3 per cent higher, with positive progress across the business.
Topps Tiles shares rose today and were up 3.36 per cent or 1.38p to 42.38p in late morning trading, having fallen over 32 per cent in the last year.
Boost: Topps Tiles enjoyed another record year on the sales front, it revealed today
Topps Tiles said it continues to perform well against a strong comparative period last year.
Like-for-like sales were down 1.2 per cent year-on-year in the final quarter, with the underlying like-for-like sales trend similar to that reported in the third-quarter update. For the full year, like-for-like sales growth was 9.4 per cent.
Topps said average weekly sales per store were 25 per cent higher than in the pre-pandemic period of FY19.
Around half of this growth is due to the transfer of sales from closed stores as it rationalised its store network and improved store sales densities, while the remainder was down to underlying sales growth, including particular strength in trade sales.
Boss Rob Parker said: ‘We are delighted to have delivered a second successive year of record sales for the group, with profits expected to be towards the upper end of market expectations. All parts of the group contributed to this performance and are making good strategic progress as we develop and diversify the business.
‘Our market leading omni-channel retail business, Topps Tiles, has performed well against strong prior year comparatives and we are continuing to grow our base of loyal trade customers.
‘The Group has worked hard to achieve a strong balance sheet with positive net cash and this will serve us well as we move into a period of macroeconomic volatility, leading to a more uncertain environment for consumers.’
Victoria Scholar, head of investment at Interactive Investor said: ‘This is an extension of last quarter’s positivity with encouraging sales figures once again, given the challenging macroeconomic backdrop.
‘The retailer has been successfully rationalising its store network this year and navigating headwinds from inflation, supply chain issues and the cost-of-living crisis. Shares in Topps Tiles have shed more than a third of their value so far this year but have recovered off the 2022 nadir.’
Dudley Shanley, an equity analyst at Goodbody, said: ‘Amidst growing uncertainty across the industry as we head into 2023, these are a reassuring set of results for the Group, which remains focused on achieving its goal of securing a 20 per cent market share by 2025.’