Last checked at (Sharecast News) - Tile specialist Topps Tiles reported a decline in first-half revenues on Wednesday but said it expects to see a "sharp" increase in sales as Covid-related restrictions ease from April.
In the 26 weeks to 27 March, total revenues fell to £103.6m from £106.2m in the same period a year ago. On a like-for-like basis, retail sales rose 2%, however.
Although the first quarter was strong, with retail LFL sales up 19.9% in the first 13 weeks of the current financial year, the second quarter was hit by trading restrictions, including the closure of stores to retail customers, which "significantly" impacted sales and margins.
Revenues from homeowners were hit particularly hard, Topps said, contributing to an overall reduction in LFL sales of 17.3% in Q2.
Looking ahead, however, the company said that as trading restrictions lift by the middle of next month, it expects a sharp increase in sales, with margins recovering to "more normal" levels.
"This view is underpinned by the group's strong trading performance following the end of the first lock-down last summer," it said.
Chief executive Rob Parker said: "We are looking forward to the lifting of lockdown restrictions in April and are concentrating on being well prepared for the return of all customers to our stores. We have a strong balance sheet, are debt-free, and are well positioned for growth this financial year as we move towards our goal of '1 in 5 by 2025'."
19 May 2020 12:43
Covid-19 closures pushes Topps Tiles into the red
(Sharecast News) - Topps Tiles slid into the red in the first half of the year, the retailer said on Tuesday, after the Covid-19 pandemic shut stores and battered sales.
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