Topps Tiles surpassed expectations in the final weeks of 2024 as the retailer made progress with efforts to boost professional trade sales.
The group followed three consecutive record years for revenues with a disappointing 2024, as poor consumer sentiment and broader economic weakness saw profits almost halve in the year to 28 September.
But Topps told investors on Wednesday that group like-for-like sales in the 13 weeks to 28 December were up 4.6 per cent year-on-year, with 12.9 per cent growth over the final fives weeks.
The group attributed gains over the period to ‘robust growth in trade revenues’ at both Topps Tiles and Pro Tiler Tools.
It came as Topps revealed the planned retirement of boss Rob Parker, who will step down by the end of 2025 after 18 years with the tile retailer once a replacement has been appointed.
The group said the total number of active registered traders within its Topps Tiles business was up 7 per cent annually at 141,000, with the number of new traders registering in the quarter more than doubling year-on-year, both in store and online.
Topps, which has just opened a new 140,000sqft warehouse in Northampton as a base for its Pro Tiler Tools unit, said trade growth had also been supported by ‘developments in the Topps Tiles brand’s digital channels, clearer pricing and excellent stock availability’.
Topps has been making progress on boosting its trade offering
The group also highlighted progress on its ‘mission 365’ plan, which also targets an improvement in the ‘trade digital experience’, an expansion into new coverings categories, and increasing its B2B sales focus
Outgoing boss Parker said: ‘Whilst it is early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results, which leaves us well positioned to deliver our goal of Mission 365.’
Topps will hope strong Christmas trade will relieve pressure from major investor MS Galleon, which has been urging a change of approach as it warns the firm is at ‘significant danger’ of losing further market share to rivals.
Topps Tiles shares soared 8 per cent to 40.2p in early trading, parring back 12-month losses to 17 per cent.
Analysts at Peel Hunt said they were ‘encouraged to see a much stronger performance than we expected’ but held off from updating forecasts until Topps provides further guidance on its performance in the New Year.
Peel Hunt added: ‘Looking ahead, we believe Topps remains one of the stocks most geared into consumer recovery, although the group’s medium-term strategy is also largely driven by internal measures ranging from range expansion to new commercial markets.
‘On the consumer front, while we have yet to see signs of any rebound, we believe we’re through the worst, hoping the pick-up in trading represents a more positive trend than a one-off.’
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