Topps Tiles shares slipped on Wednesday after the flooring specialists reported slowing sales amid difficult market conditions.
The group said it is outperforming a weak home improvement market but has moved to cut costs, announcing the closure of 23 underperforming stores as it prioritises margin over top-line growth.
But this wasn’t enough to spark enthusiasm for the stock, which was down 3% at the time of writing.
Group revenue for the 26 weeks to 28 March came in at £142.7 million, marginally down year-on-year, though that reflects disruption at trade brand CTD following a lengthy CMA process rather than any underlying weakness.
Strip CTD out, and the core Topps Tiles business grew revenue by 2.1%. This compares to a wider market that contracted by around 2.5% over the same period.
To help cut costs, Topps said 23 sites will be shut across the financial year, with the company expecting sales to transfer elsewhere in the estate rather than simply disappear. The savings are expected to land mainly in the second half and should both support this year’s numbers and deliver a structural improvement in profitability going forward.
CTD itself is recovering. Housebuilder volumes have been rebuilding since the end of FY25, and CTD stores posted like-for-like growth of 1.0% in the half. The business remains on track to return to profit for the full year.
“Topps continues to outperform a softer market,” said Chief Executive Alex Jensen.
“In light of subdued consumer sentiment and geopolitical uncertainty as well as the cumulative impact of cost inflation, the management team is implementing a targeted programme of self-help measures weighted towards the second half. These actions are designed to support year on year profit growth and provide a stronger financial platform for 2027 and beyond.”