Topps Tiles has hailed its “strong trading momentum” and improving sales across the business, as its turnaround efforts gather pace.
For the quarter ending June 28, 2025, Topps Tiles reported adjusted sales up 10.1% compared to 4.1% growth in the first half of the year.
Like-for-likes sales jumped 7.3% in the third quarter and are up 4.4% on a year-over-year basis. Trade sales are stronger than homeowner sales, with active Topps Tiles trade customers increasing 12% in the period to 150,000.
Topps Tiles said margins improved in the period, and it expected adjusted gross margin in the second half to be “slightly higher” than in the first half of the year.
The retailer said that the “cost environment does continue to remain challenging” with a further c.£4m of cost increases coming into the business since April with changes to National Insurance rates and thresholds, and the increase in National Living Wage.
Topps said it also expected “performance-related pay” to be higher in the second half, as its profits increase. As a result, the retailer said it expects operating costs in the second half to grow at a lower rate than gross profits.
The retailer also said that “rapid progress” had been made with its acquisition of CTD since the competition watchdog completed its investigation, and Topps said it “remains confident that CTD will be at least breakeven by the fourth quarter” and will look to “meaningfully grow this strategically important business in 2026 and beyond”.
The group added that “good strategic progress continues across the five main growth levers which will deliver” its ‘Mission 365’ goal, including preparing to relaunch the Topps Tiles trade website with enhanced functionality alongside a new customer engagement platform.
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