Topps Tiles has warned over annual profits after the recent extreme heatwave compounded trading difficulties, with sales falling and tradesmen pausing work. The Leicestershire-based tile chain now expects underlying profits for the year to the end of September to be above £6.5 million, a sharp fall from the previous year’s £9.2 million.
Sales Decline and Heatwave Impact
The retailer reported a 1.8% drop in sales during the three months to June 27, with like-for-like revenues at its main Topps Tiles brand flat but worsening through the quarter. The company noted that demand shifted toward lower-priced products amid wider customer uncertainty, and the searing heat at the end of June added to trading issues.
Topps said: “Recent periods of extreme heatwave conditions led to temporary work stoppages among housebuilders and traders, further affecting activity levels. Whilst there is likely to be a catch-up over a six-month period, this is unlikely to come back fully in our financial year which ends in September.”
CEO Comments and Market Outlook
Alex Jensen, chief executive of Topps, said: “Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products. 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.”
The profit warning underscores the challenges facing the home improvement sector as consumer confidence remains subdued and external factors like extreme weather disrupt activity.
