Topps Tiles has warned that annual profits will be significantly lower than last year after extreme heatwave conditions forced housebuilders and traders to halt work, adding to the company's challenges following 23 store closures earlier in 2026.
Heatwave Halts Work, Hits Sales
The Leicestershire-based flooring and tiles retailer said sales fell 1.8% in the three months to June 27, with like-for-like revenues flat across its main Topps Tiles brand and worsening through the quarter. The company blamed a combination of weaker consumer sentiment and the searing heat at the end of June, which it said caused temporary work stoppages among its core customer base of tradesmen and housebuilders.
“Recent periods of extreme heatwave conditions led to temporary work stoppages among housebuilders and traders, further affecting activity levels,” Topps said in a statement. The company noted that while some catch-up work is expected over six months, it is unlikely to fully recover before its financial year ends in September.
Profit Warning and Share Price Fall
Topps now expects underlying pre-tax profit for the year to September to be above £6.5 million, a sharp decline from the £9.2 million reported in the previous year. Shares fell 8% shortly after the market opened on Wednesday, July 1.
CEO Alex Jensen said the firm “continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products.” She added: “We’re making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth. In the short term, the macro-economic environment continues to remain challenging.”
Store Closures and Cost Cutting
The group has been slashing costs amid difficult trading. In April, it announced the permanent closure of 23 stores, representing 7% of its 319-strong estate. The closures affected both its Topps Tiles and CTD brands, further pressuring revenues.
Topps had acquired CTD out of administration in a deal that was scrutinised by the Competition and Markets Authority (CMA), which required the sale of some CTD stores to address competition concerns. The company now operates 23 CTD stores, down from an initial 31.
Previous Acquisitions and Restructuring
In December 2025, Topps bought the brand of collapsed rival Fired Earth in a £3 million rescue deal after Fired Earth entered administration in October 2025, leading to the closure of its 20 UK showrooms and 133 job losses.
The heatwave that swept Britain in June broke or equalled a number of long-standing temperature records, according to the Met Office, which issued rare amber and red extreme heat warnings. The sweltering conditions caused sleepless nights, school closures, and travel disruption across the country.
