Topps Tiles has posted a dip in sales in its first quarter due to “ongoing challenges to discretionary consumer spending” as the cost-of-living crisis continues to take its toll.
For the 13 weeks to December 30, 2023, the tile retailer posted a 4% dip in group sales year on year, while like-for-like sales during the quarter were down 7.1%.
Topps Tiles noted that sales to trade customers had proved “more resilient” than sales to homeowners during the period.
The flooring specialist said trading “remains strong” online with “significant” year-on-year sales growth driven by its Pro Tiler Tools business.
Topps Tiles added that Parkside, its commercial business that sells to architects and interior designers, is “performing in line with expectations” and profitable in the year to date.
The retailer added that, despite ongoing inflationary pressures, its cost base is currently “well controlled” while cash flow “remains strong”.
In a statement, Topps Tiles said: “The group remains well-positioned to respond to market conditions and we expect to have gained further market share in the first quarter, driven by our world-class customer service, market-leading brands and specialist expertise, and supported by our strong balance sheet.
“We remain excited about the opportunities for Topps Group over the medium term.”