finance
Topps Tiles forecasts lower annual profits after sales drop
The tile retailer lowered its profit outlook for the year ending September after sales fell 1.8 percent in the latest quarter. Extreme heat in late June added to weaker consumer demand and prompted temporary work stoppages.
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Topps Tiles reported a 1.8 percent decline in sales for the three months ended June 27, with like-for-like revenues flat across its main brand. The Leicestershire-based retailer said demand shifted toward lower-priced products amid broader customer uncertainty.
Extreme heat at the end of June led to temporary work stoppages among housebuilders and tradespeople, further reducing activity levels. The company stated that these conditions compounded existing trading pressures.
Profit outlook and cost measures The retailer now expects underlying profits for the year to the end of September to exceed £6.5 million, compared with £9.2 million the previous year. Shares in the company fell 8 percent after the announcement. The company has closed 23 stores, representing 7 percent of its 319-location estate, as part of cost-cutting efforts.
It also reduced its CTD brand stores from 31 to 23 following a regulatory review.
Recent acquisitions In December the company purchased the brand of rival Fired Earth for £3 million after that firm entered administration, which had closed 20 showrooms and cut 133 jobs.
