- Like-for-like growth up 4.3% in year to October 1
- Fourth-quarter growth weaker with like-for-likes up 1.4%
- Adjusted pre-tax profits on track
Topps Tiles has posted increased like-for-likes at its pre-close update, but revealed that its like-for-like growth slowed during the fourth quarter.
Like-for-likes grew at 4.3% over the year to October 1, hitting a high of 6.2% in the third quarter before falling to 1.4% in the final quarter.
Topps said that it believed its strategic decision to exit the low-margin wood flooring category had reduced quarter-four like-for-likes by around 1.5%, but that the impact of this would reduce over the next quarter as sales from its larger-format tiles business rose.
Revenues are expected to be around £215m, up slightly from 2015’s £212.2m, while adjusted pre-tax profit is on track and expected to come in at around £22.3m.
Chief executive Matthew Williams said: “I am pleased to report on a successful year for Topps, where we grew sales to a new record, through our proven strategy of ‘Out Specialising the Specialists’.
“Whilst market conditions weakened over the final quarter as a result of reduced levels of consumer confidence, we remain confident in our ability to outperform the market and deliver our goal of further profitable sales growth.”
Topps’ trade loyalty scheme grew over the period, with 40,000 traders now regularly taking part. It launched more than 50 new ranges in the period, which accounted for 12.8% of total sales.
The retailer opened five stores during the period, and currently has 351 shops, including 15 new format “boutique” stores. In 2015 it had 348 stores, including 13 boutique outlets.
Topps will report its final results for the year on November 29.