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Like-for-likes at Topps Tiles up by 6.2%

Published: 6 July 2016
Topps Tiles has announced the financial results for its third quarter - the 13 weeks to July 2 - with like-for-likes up 6.2%.
Like-for-likes at Topps Tiles up by 6.2%
This was impacted by the earlier Easter period. The store reported continued good progress with its strategy of "out-specialising the specialists". A new personalised digital brochure was launched during the quarter to enable customers to create a bespoke brochure with content specific to the rooms and designs they're interested in.

Q3 also saw the launch of several new ranges including stone and wood effect in plank style format. The retailer has almost completely stopped selling real woof flooring and this has created space for new products such as the XL format range of tiles in excess of 60 x 60cm.

Six new stores were opened during the quarter, bringing the total of trading stores to 348, including 15 boutique stores.

Chief executive officer Matthew Williams said: "Our focus on the successful strategy of 'Out Specialising the Specialists' has enabled us to deliver healthy like-for-like sales growth of 6.2% in the third quarter, with initiatives to extend the appeal of the Topps brand continuing to attract new customers.

"While it is currently too early to ascertain the implications of the result of the UK referendum, we remain confident in the longer term outlook for our business and in our ability to outperform the market."

Commenting on the results, XTB.com market analyst and FX broker David Cheetham said: "The Q3 trading update for Topps Tiles is solid but not spectacular with like for like growth of 6.2% illustrating steady growth. The UK's largest tile specialist attributes the increase for the most recent quarter to the earlier than usual falling of Easter in 2016 which weighed on Q2 performance but boosted Q3.

"Whilst these latest results may be taken as slightly pleasing for investors, they don't represent any substantial positive developments that would suggest the recent selling seen in the stock price - which has driven the shares down to their lowest levels in over a year - was misplaced.

"The building and home improvement industry as a whole looks vulnerable in the wake of a Brexit, and for the short term at least, the fundamentals surrounding the UK's leaving of the EU will likely continue to impart downward pressure on this stock."

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