Topps Tiles PLC (LSE:TPT) shares fell 4.6% to 33p as first-half sales stuttered in a declining home improvement market, requiring the tile retailer to step up cost-cutting measures to protect profitability.
Revenue of £142.7 million was reported for the six months to late March, broadly flat year on year, though sales excluding its CTD business rose 2.1%. This compares with an estimated 2.5% fall across the wider DIY market.
Like-for-like sales edged up 0.1%, with growth moderating in the second quarter after a stronger start to the year.
The group said it remains on track to return CTD to profit this year, with store sales rising and housebuilder demand beginning to recover.
To offset cost inflation and weaker consumer sentiment, Topps is closing 23 underperforming stores and cutting costs across its estate and head office. The company expects this to weigh on revenue but improve margins through efficiency gains.
Online sales continued to grow, accounting for 21% of revenue, while trade-focused and specialist brands also delivered strong growth.