Topps Tiles adjusted profit before tax and discontinued operations fell from £8.7m to £7.8m in the 27 weeks to April 3 as consumer confidence remains subdued.
Group like-for-likes climbed 2% in the period, compared with a decline of 18.5% in the same period last year.
However current trading has slowed, with like-for-likes dropping 4.3% in the first seven weeks of the current period, while revenue declined 5.1%, demonstrating the “challenges facing retailers, with ongoing pressure on consumer spending levels and confidence”, according to Topps Tiles.
Group revenue in the 27 week period climbed from £87.6m to £91.4 million.
Topps Tiles chief executive Matthew Williams said: “The economic environment remains challenging for retailers, with consumer confidence and discretionary spending continuing to show signs of weakness.
“In light of this backdrop, our business has performed robustly; growing sales and continuing to keep a tight control on costs. As the market-leading brand with a distinct focus on outstanding customer service and value, we believe the business is well placed to benefit when consumer confidence returns.”
Topps Tiles traded from 309 UK stores compared to 319 in the prior interim period.
The retailer said “as previously indicated” it has “adopted a prudent approach to expansion” and will “only consider those opportunities that are an excellent fit with the existing portfolio”.
Topps Tiles said its e-commerce business “continues to make good progress”.
During the period the retailer closed its loss-making stores in Holland. The Dutch business comprised 12 stores and accounted for 4% of the retailer’s revenue in 2009, but made a loss of £5m during the last financial period.
Shore Capital analyst Kate Calvert said the dip in current trading “suggests that housing related consumer spending remains difficult. If this trend continues, there is likely to be further downward pressure on full year forecasts”.
No comments yet