Investors cracked into Topps Tiles PLC (LON:TPT) on Monday after the UK’s largest tile retailer reported a sharp rise in sales over the Christmas period.
Like-for-like revenues for the 13 weeks to the end of December – the first quarter of Topps’ financial year – jumped by 3.4%, compared to growth of just 0.3% a year earlier.
READ: Topps Tiles shares rise as it returns to like-for-like sales growth in new financial year
It said the solid showing was brought about by its ability to maintain “market leading margins” and further investment in its inspirational service offering, as well as a “strong outperformance” from the UK tile market as a whole.
Topps didn’t use the update to increase its full-year forecasts, instead choosing to keep its “prudent guidance” in place.
The £155mln company added that it has completed the refit of eight pilot shops ahead of its two-year all-store improvement programme which will see each of its 371 shops refurbished.
‘Encouraging start’
“The group has made an encouraging start to the new financial year with like-for-like sales in Q1 up by 3.4%,” said chief executive Matthew Williams.
“We believe this represents an outperformance of the overall tile market in the period, reflecting the continued success of our strategy of "Out-specialising the Specialists" and some further measured investment in both our trade and retail offer during the period.
“Our expansion into the commercial market is also progressing to plan, with the first investments made in the Parkside business adding new capabilities and resource.”
Interim results for the period to 31 March will be published on 4 April.
Shares were up 6.1% to 86.1p shortly after midday on Tuesday.