All change at Topps Tiles as sales return to growth and its chief retires
Topps Tiles reported a return to sales growth during the golden quarter driven by trade demand, while its chief executive Rob Parker announced his retirement from the firm after five years at the helm.
Sales in the golden quarter were up 4.6 per cent year on year, while sales in the shorter festive period – the five-weeks covering Black Friday, Christmas and Boxing Day – rose 12.9 per cent.
Topps’ stock price subsequently rose nearly four per cent in early trades.
Like-for-like sales for the fourth quarter were 8.2 per cent lower year-on-year, despite trading levels “remaining stable”.
The tile retailer said that the sales improvement in the first quarter of its financial year was driven by trade revenue at both its tile offering – Topps Tiles – and its trade tools segment, Pro Tiler Tools.
The total number of active traders registered to Topps rose seven per cent year on year to 141,000, the company said, while sales at Pro Tiler Tools grew by 20 per cent year on year in the first quarter.
Chief executive Rob Parker said: “We are pleased to see the Group return to sales growth in the first quarter of the new financial year, supported by our strong trade offer and continued strategic progress, particularly with our digital and omnichannel growth initiatives.
“Whilst it is early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results.”
Analaysts at Peel Hunt said Topps has “enjoyed a much stronger end to [the first quarter] than we expected” although it left its forecasts unchanged.
Analysts added that “strategic progress continues to show clear momentum”, rating the stock a ‘Buy’ with a target price of 70p.
Topps’ acquisition of CTD Tiles out of administration is currently the subject of a “routine” CMA merger inquiry. A decision by the CMA on the phase 1 enquiry is due to be made by 17 February 2025.
Topps is required to refrain from integrating the CTD Business into the company until the CMA review process has concluded.
Rob Parker steps down
The company announced that Rob Parker, who joined the retailer in 2007 and has served as chief executive since 2019, will step down from his role towards the end of 2025.
Parker will remain in place “until an appropriate successor has been appointed”, the search for which has already begun, the company said.
Paul Forman, Chairman, said: “Rob has made an enormous contribution to the development and success of the business over the last 18 years.
“During his time as CEO, he has overseen a period of significant diversification and growth of the business, and has led the Group through a particularly volatile period for the UK economy, including the Covid pandemic.
“He will leave with the Group well-positioned and we are grateful for his continuing leadership and commitment while we complete a managed transition to his successor. On a personal note, I would like to thank Rob for the support, professionalism and insight he has given me as a newly appointed Chair.”