Topps Tiles has seen its sales and profit decline, as the retailer blamed lower footfall in stores and a slowdown in spending on big-ticket items for the drop in the first half of the year.
Over the 26-week period to the end of March, the tile specialist posted a 5.9% fall in total group sales year-on-year to £122.6m, as like-for-like sales fell by 11.3%.
Despite being affected by factors such as a “weaker market”, the group said its gross margin “was up year-on-year as cost of goods pressures continued to ease”.
Although its net profit was hit by “lower volumes, operating cost inflation and the impact of operational gearing, despite strong cost control throughout the period”.
As a result the business said it expects profit in 2024 to be “weighted towards the second half”.
Topps Tiles saw its online business perfom strongly, resulting in year-on-year sales growth of 38.3% over the first half.
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The retailer said: ” Subdued demand in the domestic repair, maintenance and improvement sector, especially for bigger ticket projects, has persisted into 2024, resulting in lower footfall into Topps Tiles stores, especially across the homeowner customer group.”
“Group profitability in the first half of the year will be impacted by a number of factors including the weaker market, the timing of the holiday pay accrual and seasonally higher energy usage in the period.
“The business remains in a strong financial position, with a robust balance sheet, and is focused on maximising market opportunities and emerging in a stronger competitive position as the market improves.”
At the start of the year, Topps Tiles saw its first quarter group sales slip 4% as cost-of-living pressures continued to dent consumer spending.
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