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(Alliance News) - Topps Tiles PLC on Wednesday reported a strong sales performance for the first quarter of its financial year, driven by steady growth from its main customer groups.
For the 13 weeks ended December 26, retail like-for-like sales increased by 20%, compared to a 5.4% drop the same period a year before, driven by growth in sales to professional fitters and homeowners.
Looking ahead, the tile retailer noted it is still allowed to trade in England, despite the current lockdown. Tiles and associated products are considered building materials and therefore qualify under the building-supplies exemption.
However, under the current lockdown rules, the group has been advised to close its tile display aisles to prevent browsing. As a result, Topps Tiles expects to report a hit on sales during the period of tighter restrictions, while trading margins come under pressure due to additional delivery costs associated with a rise in online sales.
"As we have done throughout the pandemic, we are continuing to put colleague and customer welfare first. While the latest lockdown restrictions will impact sales, at this stage it is very difficult to estimate the level of impact or how long this may last," said Chief Executive Officer Rob Parker.
"The business remains well funded, is debt free, has a market leading offer and a clear strategic focus on achieving our goal of '1 in 5 by 2025'. The combination of these factors gives me confidence that Topps is well-positioned for growth as we emerge from the restrictions of the pandemic and the economy recovers," Parker added.
The '1 in 5 by 2025' refers to Topps Tiles's goal of accounting for GBP1 of every GBP5 spent on tiles and associated products in the UK by 2025, raising its market share to 20% from 17%.
Topps Tiles will publish a trading statement for the 26 weeks ending March 27 on March 31.
Shares in Topps Tiles were down 0.4% at 57.05 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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