// Topps Tiles says like-for-like sales in the first 6 weeks of Q4 is up 15.5%
// Average weekly sales were down in April, May & June but recovered in the 6 weeks to August 6 to average weekly growth of 13.1%
// It now forecasts a modest level of adjusted pre-tax profit in the full-year period ending Sept 26
Topps Tiles has revealed that it now expects to post a “modest” profit this year as retail sales bounced back the final quarter.
The home improvement retailer said trading in the first six weeks of its final quarter was robust, with like-for-like sales climbing by 15.5 per cent year-on-year.
Topps Tiles also said its performance throughout the Covid-19 pandemic has been much better than initial forecasts.
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Although the retailer’s average weekly sales were down 80 per cent, 69 per cent and 20 per cent respectively in April, May and June, they recovered in the six weeks to August 6 to average weekly growth of 13.1 per cent.
Topps Tiles also said it benefited from a surge in the popularity of DIY due to home improvement works taking place during lockdown, as well as a steady recovery in trade customer demand following April’s low.
While its online sales moderated from peaks seen in April and May, it still remained above previous levels.
Topps Tiles added that it has now reopened all of its stores following the easing of lockdown restrictions in mid-June and the majority are trading seven days a week.
It also said its order bay was significantly ahead of the prior year.
Topps Tiles’ overall trading in the final quarter prompted its management to forecast a modest level of adjusted pre-tax profit in the full-year period ending September 26.
It comes after Topps Tiles had swung to a £4 million loss in its half-year trading update earlier this year.
“I am pleased with how well the business has navigated the crisis to date and feel that we are well positioned for whatever comes next,” Topps Tiles chief executive Rob Parker said.
“Our colleagues have responded brilliantly over the last five months and I would like to once again place on record my thanks for their dedication and endeavour.
“I am also very grateful to our loyal customers who have continued to support us during this period.
“Our response to the pandemic has strengthened the business and fundamentally improved our liquidity position, providing further flexibility and putting us in a strong position both to benefit from the recovery in our markets and to meet any future challenges.”