Topps Tiles (LSE:TPT) trimmed its full-year profit guidance after third-quarter trading came in below its own forecast, with the UK's largest tile specialist now expecting adjusted profit before tax above £6.5 million for the year ending September.
Group revenue including CTD, its commercial tile business, fell 1.8% to £75.6 million in the 39 weeks to 27 June, though stripping out CTD, which has been subject to prior-year store closures, revenue edged 0.6% higher to £69.4 million.
Like-for-like sales at Topps Tiles were flat against last year overall, but deteriorated in the second half of the quarter, as demand shifted toward lower-priced products and extreme heatwave conditions caused temporary work stoppages among housebuilders and traders.
The company said a catch-up in lost activity was likely over a six-month window, but acknowledged this would not fully land within the current financial year.
Online revenue rose to 23.3% of the total in the quarter, up 3.7 percentage points on the same period last year, while the hard surfaces category grew 10.9%, driven by acoustic panels, outdoor tiles and shower panels.
"Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products," said chief executive Alex Jensen, noting the tile market itself declined approximately 1.6% in the quarter.
