Topps Tiles boss to retire after sales enjoy holiday bounce

Topps Tiles exceeded expectations in the final weeks of 2024 as the retailer made progress in its efforts to boost professional business sales.

The group followed three consecutive record years of revenue with a disappointing 2024, as poor consumer sentiment and broader economic weakness saw profits almost halve in the year to September 28.

But Topps told investors on Wednesday that the group’s comparable sales in the 13 weeks to December 28 rose 4.6 percent year-on-year, with growth of 12.9 percent in the past five weeks.

The group attributed the gains during the period to “robust commercial revenue growth” at both Topps Tiles and Pro Tiler Tools.

It came as Topps revealed the planned retirement of boss Rob Parker, who will step down at the end of 2025 after 18 years at the tile retailer once a replacement has been appointed.

The group said the total number of active registered merchants within its Topps Tiles business rose 7 per cent year-on-year to 141,000, and the number of new registered merchants in the quarter doubled from a year earlier, both in-store and online. line.

Topps, which has just opened a new 140,000 sq ft warehouse in Northampton as a base for its Pro Tiler Tools unit, said business growth was also supported by “developments in the Topps Tiles brand’s digital channels, clearer pricing and excellent stock availability.

The group also highlighted progress in its ‘mission 365’ plan, which also aims to improve the ‘digital commercial experience’, expand into new coverage categories and increase its B2B commercial focus.

Outgoing boss Parker said: “Although it is early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results, leaving us well positioned to deliver on our Mission 365 objective.”

Topps hopes the strong Christmas trading will ease pressure from major investor MS Galleon, which has been urging a change of approach as it warns the company is in “significant danger” of losing further market share to rivals.

Topps Tiles Stock it soared 8 per cent to 40.2p in early trading, narrowing 12-month losses to 17 per cent.

Analysts at Peel Hunt said they were “encouraged to see a much stronger performance than we expected” but held off on updating forecasts until Topps provides more guidance on its performance in the New Year.

Peel Hunt added: ‘Looking ahead, we believe Topps remains one of the most consumer recovery-oriented stocks, although the group’s medium-term strategy is also largely driven by internal measures ranging from expanding the range to new commercial markets.

“On the consumption front, although we have not yet seen signs of recovery, we believe we are past the worst, hoping that the rebound in trade represents a more positive trend than something isolated.”