Topps Tiles stays in black as soaring costs on supplies cools
Topps Tiles was on track to deliver profit in line with expectations, as it was aided by strong sales in the third quarter and an easing of supply pressures.
The home supplies retailer said inflationary pressures on the cost of goods and shipping costs reduced during the period, despite overall UK inflation still sitting at a scorching 8.7 per cent.
Topps Tiles also gave a positive update as many retailers’ earnings were battered by the issues which were offset by the Ukraine and Russian war.
The Enderby headquartered business posted like-for-like sales that were 2.5 per cent higher year on year in the quarter, and 3.7 per cent higher on a year-to-date basis, as these issues eased.
It comes as Topps Tiles, which has 300 sites across the UK, saw pre-tax profits plummeted 69.6 per cent to £1.7m in the 26 weeks to 1 April, as it was hindered by inflation on operating expenses.
However, its more positive trading update this morning shows that the retailer is in the black and on track to deliver a “strong balance sheet”.
“Trading in the third quarter saw a continuation of the good performance reported for the first half.
“We remain confident that adjusted profit before tax in the second half will be materially higher than the first half, and that we will perform in line with market expectations for the year as a whole,” the business said.
More to follow