Topps Tiles warns on profit

Tile and wood flooring specialist Topps Tiles said group revenue fell 10.4% on a like-for-like basis in the first seven weeks of the fourth quarter and now expects full year earnings to be below the current range of analyst expectations.The group, which operates over 300 stores in the UK, has been hit by a stagnant housing market with many households putting renovation projects on hold.Revenue for the 13 weeks of the third financial quarter fell by 1.9% on a like-for-like basis. "We consider that a decline in consumer confidence is the key driver for this recent performance," Topps said in a trading update."Management will continue to push forwards with the strategy previously outlined in order to protect and grow our market leading position," it added. Topps said it will be taking measures such as driving gross margin gains through increased direct sourcing, prudent cost controls and improving operational efficiencies wherever possible. ---CJ Topps Tiles