Topps Tiles PLC (LSE:TPT) said trading in the run-up to Christmas remained solid, marking a fifth consecutive quarter of like-for-like sales growth as the group continued to outperform a subdued home improvement market.
In a trading update for the 13 weeks to 27 December, the tile retailer said revenues excluding its smaller CTD business rose 3.7% year on year, building on record sales achieved in the previous financial year.
At its core Topps Tiles brand, like-for-like sales increased 2.0%, driven by a strong performance from trade customers, where revenues rose 3.7%, and continued growth in newer product categories under its “Mission 365” strategy.
Like-for-like growth strips out the effect of new store openings or closures, giving a clearer picture of underlying demand.
Including CTD, group sales rose 1.6%. CTD, which focuses on trade customers, is now operating from 22 stores, down from 31 a year ago, following the disposal of sites required by the Competition and Markets Authority. The final store disposal was completed in December, bringing the regulatory process to an end.
Despite the smaller estate, the remaining CTD stores delivered like-for-like growth of 4.7% during the quarter. The group said this performance supports its aim of returning CTD to profit during the 2026 financial year.
Online sales also continued to grow, accounting for 19.7% of total group revenue in the quarter, up from last year. The company said recent investment in its digital platforms was helping to improve customer engagement, with a new trade-focused app still on track to launch later in the year.
Topps Tiles also highlighted early progress following the acquisition of the Fired Earth brand, website and stock in December.
A fully operational supply chain and transactional website were established within weeks, allowing the group to meet what it described as strong initial customer demand.
The update was the first under the leadership of the new chief executive, Alex Jensen, who formally took over earlier in December following the retirement of long-serving boss Rob Parker.
Jensen said: “The Group continued to deliver growth in Q1 across each of our existing businesses and delivered like-for-like growth in CTD stores, whilst achieving some significant milestones… We are confident of delivering another year of progress both strategically and financially.”