Sales growth slips at Topps
Topps Tiles has blamed lower consumer confidence for a drop in growth in the past quarter, but it will still meet profit forecasts.
The chain saw like for like growth in the quarter to 1 October fell from 5.2% last year to 1.4%. It said about half of the fall (1.5%) was due it stopping selling ‘low margin’ wood flooring but the majority was because of lower consumer confidence.
Sales for the year are expected to be about £215m, with like for like growth of 4.2%. It says profits will be within the range of analyst forecasts of £22m-£22.7m.
‘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,’ says Matthew Williams, Topps ceo.
‘As a result of in-store space freed up from the exit of the wood flooring category we are introducing new and exclusive ranges of tiles, such as our new XL range, which will meet the growing demand for even larger tiles and also allow us to improve overall returns’.