Tile retailer Topps Tiles Plc has reported a ‘challenging’ quarter due to ‘continued weak home improvement spending’.
According to its latest trading update for the eight weeks ended 22 February 2020, retail like-for-like sales fell by 5.5%.
As a result, the Group now expects that first half profit will be ‘significantly below’ the prior year level.
Rob Parker, CEO, said: “Trading conditions in our second quarter have remained challenging, reflecting continued weakness in home improvement spending. Against this backdrop we are taking appropriate action to ensure we remain competitive, to reduce costs and to strengthen cash flows.
“While UK housing market indicators have shown an encouraging improvement in the period since the General Election, these traditionally have a lagged impact on our trading and we would not expect to see any benefit from these until later into the second half – our performance during this period will be key to the outcome for the year as a whole.”
“We remain confident that our market-leading retail offer and recently established commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term.”