Topps Tiles celebrates its third consecutive record year of revenue for the business as it rose 6.3% to £262.7m, confirming it has achieved its market share goal “two years ahead of schedule”.
The business said its sales per store were up 30% compared to pre-pandemic levels, thanks to further improvements to its customer service scores, and successful expansion into new product categories
But for the 52 weeks to September 30, 2023, the flooring retailer saw its profit before tax fall 37.6% year on year from £10.9m in 2022 to £6.8m, which it said was a result of “the impact of cost inflation” on its cost base.
Topps Tiles said its performance in the initial weeks of the new financial year mirrors the widely acknowledged difficulties in discretionary consumer spending.
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Despite this, it said it is “well-positioned to continue to take market share due to competitive advantages”, including market-leading brands, world-class customer service, specialist expertise, strong balance sheet, growing cash position and ambitious growth strategy.
Chief executive Rob Parker said: “This has been a further year of strategic progress for the group and we are delighted to have delivered a third consecutive year of record sales and to have achieved our ‘1 in 5’ market share goal two years ahead of schedule.
“While profitability for the year reflects the impact of inflation on our cost base, particularly during the early months of the period, these pressures began to abate in the second half, with the smaller store estate and the cost reduction plan at Parkside providing further mitigation.”
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