Topps Tiles raises profit expectations as it enjoys second straight year of record sales after pandemic boom
- Topps Tiles has seen group sales rise more than 19% in the past year, figures show
- The retailer’s stock price is up today, but the stock is down more than 30% for the year
Topps Tiles expects full-year earnings to be at the upper end of market expectations after enjoying another record year for sales.
In an update for the 52 weeks to October 1, the retailer said group sales were around £247.3m, up 10.6% from a year ago. year.
Group sales in the 13 weeks to October 1 rose 4.3%, with positive progress across the business.
Shares of Topps Tiles rose today and were up 3.36% or 1.38p at 42.38p by late morning, after falling more than 32% last year.
Boost: Topps Tiles had another banner year on the sales front, it revealed today
Topps Tiles said it continued to perform well from a strong comparative period last year.
Like-for-like sales were down 1.2% year-over-year in the last quarter, with the underlying like-for-like sales trend similar to that shown in the third quarter update. For the full year, like-for-like sales growth was 9.4%.
Topps said average weekly sales per store were 25% higher than in the pre-pandemic period of fiscal 2019.
Approximately half of this growth is due to the transfer of sales from closed stores following the rationalization of its store network and improved store selling densities, while the remainder is due to underlying sales growth. , in particular to the particular strength of commercial sales.
Boss Rob Parker said: “We are delighted to have achieved a second consecutive year of record group sales, with earnings expected to be at the upper end of market expectations. All components of the group contributed to this performance and are making good strategic progress as we develop and diversify the business.
“Our market-leading omnichannel retail business, Topps Tiles, performed well against strong comparisons from the previous year and we continue to grow our base of loyal business customers.
“The Group has worked hard to achieve a strong balance sheet with positive net cash and this will serve us well as we enter a period of macroeconomic volatility, leading to a more uncertain environment for consumers.”
Victoria Scholar, Head of Investments at Interactive Investor, said: “This is an extension of last quarter’s positivity with encouraging sales figures once again, given the challenging macro backdrop.
“The retailer has successfully streamlined its store network this year and weathered the headwinds of inflation, supply chain issues and the cost of living crisis. Topps Tiles shares have lost more than a third of their value so far this year, but have recovered from the 2022 nadir.’
Dudley Shanley, equity analyst at Goodbody, said: ‘Amid growing uncertainty in the industry heading into 2023, this is a reassuring set of results for the group, which remains focused on the achieving its goal of achieving a 20% market share by 2025.’