Topps Tiles Sales Decline Amidst Heatwave Disruptions
The UK tile retailer reported a 1.8% drop in sales for the latest quarter, attributing the downturn to tradesmen pausing work during recent high temperatures.
Topps Tiles experienced a notable decline in sales, with a 1.8% decrease reported in the three months leading up to June 27. The company attributed this downturn to the recent heatwave, which prompted tradesmen to halt work amidst soaring temperatures.
As a result of these disruptions, the tile and flooring chain now anticipates underlying profits for the fiscal year ending September to exceed £6.5 million. This projection represents a significant decrease from the £9.2 million profit recorded in the previous year. Following the announcement, Topps Tiles' shares fell by 5%, or 1.8 pence, to trade at 34 pence.
The company indicated that while some work may be rescheduled over a six-month period, a full recovery within the current financial year, which concludes in September, is unlikely. To mitigate financial pressures, Topps Tiles has been implementing cost-cutting measures. In April, the company announced plans to close 23 stores, which constitutes 7% of its 319 retail locations.