Topps Tiles’ Share Price Fell 8.69% on Challenging Q1’24 Results

The Topps Tiles Plc (LON: TPT) share price fell 8.69% after releasing a trading update for its fiscal Q1, also known as the 13 weeks ending 30 December 2023.  The disappointing results led to a decline in the TPT share price.

The company reported that the initial quarter's trading reflected consumers' persistent challenges in discretionary spending, particularly affecting the Repair, Maintenance, and Improvement (RMI) sector. During these 13 weeks, the group's sales saw a 4.0% decline compared to last year.

The like-for-like sales at Topps Tiles decreased by 7.1% in the first quarter, a continuation of the pattern observed in the initial eight weeks. Sales to trade customers remained relatively stable compared to those to homeowners.

However, the Online Pure Play segment showed robust growth year-on-year, notably led by Pro Tiler Tools. Additionally, the Parkside commercial segment is meeting expectations and has been profitable this year.

Despite ongoing inflationary pressures, the Group has effectively managed its cost base and continues to experience strong cash flow.

As noted in the 2023 full-year results, various factors, such as holiday pay accrual timing, increased energy consumption in the first half, and early-year trading, suggest a second-half weighting of the Group's 2024 profits.

The Group maintains a solid position to adapt to market changes and is expected to have increased its market share in the first quarter. This is attributed to its exceptional customer service, leading brands, and specialised expertise, all backed by a robust financial structure. Topps Tiles Plc remains optimistic about the medium-term prospects for the Group.

Topps Tiles share price. 

The Topps Tiles share price fell 8.69% to trade at 45.38p from Wednesday’s closing price of 49.70p.