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Topps Tiles reports 4.7% rise in half year LFL sales

Topps Tiles Banbury December 2015 725 x 500

Topps Tiles Plc (the “Group”), the UK’s largest tile specialist, announces a trading update for the 26 week period ending 2 April 2016. The Board will announce interim results for the period on 24 May 2016.

Total revenues for the 26 week period were £108.0 million (2015: £104.0 million). Like-for-like revenues for the 26 week period increased by 4.7%.

Analysis of LFL sales by quarter

 

Q1

Q2

First Half

FY 2016

+4.4%

+4.9%1

+4.7%

FY 20152

+5.2%

+5.2%

+5.2%

1 Q2 LFL sales growth in FY16 was impacted by the earlier Easter which fell within the first half this year. We estimate this reduced LFL sales growth in the quarter by c.0.6% and by c.0.3% over the half year.

2 Prior year numbers have been restated on a consistent reporting week basis due to the inclusion of a 53rd week in H2 FY2015.

Strategic Progress

We continue to make good progress with our strategy of “Out-Specialising the Specialists”, with specific initiatives in the period including:

Inspiration – during the period we completed the roll out of new inspirational wall displays which have replaced third party stands and will make the full range of products easier for customers to shop. These also give us the flexibility to move displays within the store which will help drive efficiency in the store operation.

Range – during the quarter we have launched 17 new tile ranges; with sales from lines launched in the last 12 months accounting for 8.7% of sales. We have recently launched our new Spaces™ porcelain tile range, which enables the seamless flow of tiles from indoor to outdoor using an ‘easy to fit’ technology innovation called Serafoam® which is produced exclusively for Topps (http://www.toppstiles.co.uk/spaces)

Convenience – In the core estate we opened four stores and closed two units during the quarter. The group is currently trading from 342 stores including 13 Boutique stores (2015: 340 stores including 4 Boutique stores).

Matthew Williams, Chief Executive Officer, said: “I am pleased to report that the Group has continued its encouraging trading performance, with like-for-like sales growth accelerating to 4.9% in the second quarter. Our strategy of 'Out-Specialising the Specialists' is continuing to deliver profitable sales growth and we enter the second half of our financial year in good shape, confident that our plans to extend the appeal of the Topps brand will underpin our further progress.”

Source : Topps Tiles Press Release
www.toppstiles.co.uk 

Analyst View

David Cheetham of CFD and FX broker XTB.com gave us his view:

"This latest trading update shows an uptick in growth for second quarter sales at Topps Tiles to 4.9% for stores open more than a year, despite the adverse effect of an early Easter which the firm quantify as having a negative impact to the tune of 0.6% on revenue. As we sit at the mid-point of the financial year for the UK flooring retailer, the performance continues to impress, no doubt boosted by a buoyant property market and relatively high levels of consumer spending. Whilst the results slightly lag last year's comparable sales growth of 5.2%, these figures still show a 4.7% increase for the first half of the year and have run alongside a decent recovery in the share price following a fairly sharp decline in January as turmoil gripped financial markets around the globe and sent valuations plummeting." 

Source: https://www.xtb.com

 

06 April 2016

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