Topps Tiles PLC (LON:TPT) said the sales declines reported in the first eight weeks of the current financial year have pared towards the end of the quarter.
Like-for-like (LFL) sales for the 13 weeks to 28 December slid 5.4%, which was an improvement from the 7.2% drop recorded across October and November.
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The FTSE 250-listed flooring specialist added the commercial sales in the quarter were £2.3mln, up 150% year-on-year, after the acquisition of 80% stake in commercial tiles supplier Strata Tiles last April.
House broker Peel Hunt said Topps is on track with the current forecasts, but the second quarter figures will “set the scene” for the year ahead as December is not a key month for tiles.
“While the market remains challenging, we are pleased to see sales trends noticeably recover in December after the negative effect of November’s election disruption,” analysts said in a note.
“The potential for medium-term outperformance is likely to be driven by the commercial division.”