Topps Tiles ‘Need the March Trends to Continue’

Topps Tiles (LON: TPT) reported a 4% increase in first-half revenue to £127.7 million, driven by strong trade and digital sales, but analysts caution that sustained growth is necessary to meet full-year targets.

The company’s underlying like-for-like sales rose 3% in H1, with growth accelerating in the second quarter to 3.7%. 

March was said to be particularly strong, with high-single-digit revenue growth, helped by an increase in trade sales (up 12%) and a 15% rise in digital revenues. However, homeowner demand remained subdued.

CEO Rob Parker said the company was encouraged by the improving sales momentum. 

“Following our return to sales growth in the early weeks of the year, we are pleased to see this trend accelerate in the second quarter,” he said.

At the time of writing on Wednesday, Topps Tiles shares are down around 5.9% at 32p a share.

In a note following the release, analysts at Edison noted that Mission 365 initiatives, including category extensions and digital expansion, are gaining traction. 

However, the firm warned that the company “needs the March trends to continue” to achieve its full-year growth target of 7%, excluding the CTD Tiles acquisition.

“Topps Tiles’ H125 trading update indicates improving volume and revenue trends through Q225,” said the firm. “There is a clear message that the Mission 365 initiatives to grow revenue (category extensions, greater trade and digital sales) are coming through against a subdued backdrop for the homeowner.”

Meanwhile, Topps Tiles said margins improved due to pricing and discount adjustments, but the company faces cost pressures from rising National Living Wage and National Insurance, which will add £4 million annually to expenses.

Topps Tiles also confirmed progress in CEO succession planning and received CMA approval in principle for its CTD acquisition, subject to store disposals. The company will report half-year results on 20 May 2025.