Topps Tiles PLC (LSE:TPT) shares fell as the ceramics retailer reported lower profits and said the market had turned down again.
The start of its current year has been affected by the housing market uncertainty, Topps added, with sales down 3% in the eight weeks since the end of September.
A 6.1% decline in the main business has been partially offset by continued growth at online arm Pro Tiler.
Rob Parker, chief executive said: “As we enter our new financial year, it is clear that there has been a weakening of discretionary consumer spending.“
Sales in the year to 30 September 2023 were £262 million, up 6%, but adjusted profits tumbled by a fifth to £12.5 million and by 38% at the pre-tax level to £6.8 million.
On a per-store basis, sales were up by 30% compared to pre-pandemic levels while Pro Tiler saw a 50% uplift, but heavy discounting to generate business affected margins.
Parker added that profitability for the year just ended reflected the impact of inflation on its cost base, particularly during the early months of the period; these pressures began to abate in the second half.
The dividend for the year is unchanged at 3.6p.
Shares were down 0.97% to 45.50p.