Topps warns on profits as like-for-likes dive

RETAILER Topps Tiles expects to miss profit expectations after a dramatic downturn in sales.

The Handforth-based chain which specialises in tile and wood flooring, blamed tumbling consumer confidence for the slump in trading during the seven weeks to August 20.

Having seen a modest reductions in like-for-likes in the third quarter of just 1.9% on a like-for-like basis, in the first seven weeks of the fourth financial quarter, revenues are down 10.4% on a like-for-like basis.

Topps said: “Based on these trading levels management believes the full year earnings are likely to be below the current range of analysts’ estimates.  We consider that a decline in consumer confidence is the key driver for this recent performance.”

The company, which has more than 300 stores nationwide, said it would continue with its agreed strategy which includes: improving gross margins by  increased direct sourcing; further developing its customer offer, growing its store estate and investing in marketing.

It said it would maintain a focus on “prudent cost controls and improving operational efficiencies wherever possible”.