Topps Tiles PLC (LSE:TPT) revealed that sales worsened in the second quarter as homeowners continued to refrain from splashing out on major projects.
Group sales in the first half fell 5.9% in the 26 weeks to the end of March, it said in a statement this morning.
LFL sales fell 11.3% in the second quarter, following a decrease in footfall in its stores, decelerating from the 7% drop in the first quarter.
In a trading update for March, the floor and wall tile retailer pointed to persistently subdued demand in the domestic repair, maintenance and improvement (RMI) sector, which should not be too much of a surprise to investors who've also been following news from Travis Perkins and Kingfisher in recent weeks.
Gross profit margins improved year-on-year as cost of goods pressures continued to ease, but net profits were impacted by lower sales volumes and operating cost inflation.
Topps said profitability in the first half was also impacted by factors including the timing of the holiday pay accrual and seasonally higher energy usage, with full-year profits expected to be weighted towards the second half.
Looking at different segments of the group, trade customers proved more resilient, as last year, though sales were also down. The Parkside commercial arm enjoyed a significant financial improvement and reached break-even. Group online sales rose 38.3%.
"With its market leading brands, specialist expertise and world-class service, the group is well positioned to benefit from a cyclical recovery in the RMI market," Topps said.
Management said they would discuss a "new goal" and "future profit growth opportunities" at half-year results next month.