Topps Tiles’ slow down in sales in its fourth quarter has prompted it to warn of reduced customer confidence despite an expected increase in full-year sales and profits.
The tiling and flooring retailer recorded a 1.4 per cent increase of like-for-like sales in its latest trading update, compared to 6.2 per cent the previous quarter.
However, the firm said it was expecting its like-for-like sales for the full year to October 1 to grow by 4.2 per cent
In addition, the retailer said full-year revenues were expected to be at around £215 million, up from £212.2 million in 2015, with pre-tax profits predicted at around £22 million.
“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,” Topps Tiles chief executive Matthew Williams said.
The retailer’s decision to exit from the low margin wood flooring category was also expected to see a growth in sales of larger format tiles.
Topps Tiles opened five stores during the last quarter, bringing its total to 351 stores, which includes 15 “boutique” stores.
The company will reveal its full-year results on November 29.