Topps Tiles announced a like-for-like sales drop of 1.5% for the 13 weeks to June 29, 2013 but the retailer returned to growth in June.

The tiles specialist, which operates 320 UK stores, said the third quarter was in line with expectations.

Topp Tiles chief executive Matthew Williams said: “Trading in the period since our last update five weeks ago has been more encouraging, with like-for-like sales during June returning to year-on-year growth.

“Our performance for the third quarter as a whole has been as expected and our programme of self-help initiatives and cost reduction measures remains on track as we enter the final three months of the year.”

Topps Tiles reported a 16% fall in profits in May, with adjusted pre-tax profit at £4.7m in the 26 weeks to March 31. The retailer said it remained cautious on the outlook.