Topps Tiles pins hopes on market recovery in 2025 as LFL sales fall

2nd Oct 2024 07:51

(Sharecast News) - Tile retailer Topps Tiles reported a slight sequential improvement in its fourth quarter as the decline in like-for-like sales eased, with the company pointing to a "stronger market" next year.

Adjusted group sales for the year ended 28 September totalled £248m, down 5.7% from last year's record high of £263m.

Topps has had to deal with weak demand in the domestic repair, maintenance and improvement sector over the year, especially for bigger ticket projects, as elevated mortgage rates curtail homeowner spending. Sales to trade customers have continued to be "more resilient" than sales to homeowners.

However, the company said it has continued to outperform the wider market, which has declined by 10% to 15% year-on-year.

In the fourth quarter in particular, like-for-like sales were down 8.2%, compared with the 9.7% LFL decline in the third quarter, as comparatives with the year before eased.

Looking ahead, chief executive Rob Parker said: "Macro-economic indicators point to a stronger market in 2025. While the timing and trajectory of the recovery remains hard to predict, we are confident that our clearly articulated and proven strategy will enable the further development of the group in all market conditions."

The stock was down 1.6% at 43.25p by 0910 BST.