Q3 Trading Update
Summary by AI BETAClose X
1 July 2026
Topps Tiles Plc
Q3 Trading Update
Continued strategic progress amid near-term challenging market conditions
Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile specialist, announces a third quarter trading update for the 39-week period ended 27 June 2026.
Group revenue1 (including CTD2) for Q3 FY26 was £75.6 million, 1.8% lower vs last year, driven by challenging market conditions as well as the effect of prior year store closures in CTD and the previously announced closure of underperforming stores in Topps Tiles. Group revenue (excluding CTD) for Q3 FY26 was £69.4 million, up 0.6% vs last year. Topps Tiles Q3 FY26 like-for-like revenue3 was flat vs last year, worsening in the second half of the quarter compared to the first half.
Whilst Topps continues to outperform the wider market4, which declined approximately 1.6% in the quarter vs last year, performance was below our forecast. Since the interim update, we have seen some margin pressure as ongoing uncertainty in the macroeconomic environment has led to a current greater demand for lower priced products. In addition, recent periods of extreme heatwave conditions led to temporary work stoppages among housebuilders and traders, further affecting activity levels. Whilst there is likely to be a catch up over a six-month period, this is unlikely to come back fully in our financial year which ends in September.
Significant progress has been delivered in the quarter across our key priorities, including:
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On track to deliver the previously announced major self-help initiatives to drive profitability, including network optimisation, new lower cost, flexible labour model and head office role consolidation. |
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Our digital and data strategy has advanced, with online revenue (including CTD) rising to 23.3% in Q3 FY26, an increase of 2.3ppts vs half year and 3.7ppts vs Q3 FY25. |
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Trade growth benefited from the launch of the Topps Tiles App with almost 11,000 downloads in the first month. Overall trade growth was -0.8% vs last year in quarter, with recent periods of extreme heatwave conditions leading to temporary work stoppages for housebuilders and traders. |
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New category "hard surface" extensions grew 10.9% in Q3 FY26 vs last year, driven by acoustic panels, outdoor tiles and shower panels. |
Outlook
Whilst significant progress is being made, as set out above, the macro-economic environment has continued to be challenging, with lower consumer spend and commercial areas such as housebuilding coming under further pressure.
Taking into account recent trading and given the ongoing market headwinds, we now expect Adjusted Profit Before Tax5 to be above £6.5 million.
Despite the near-term headwinds, the Board remains confident in the delivery of the Group's medium-term ambitions, including its Mission 365 priorities.
Commenting on the trading update, Alex Jensen, Chief Executive, said:
"Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products. We're making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth. In the short term, the macro-economic environment continues to remain challenging."
Notes:
1. Group revenue and revenue growth for the 2026 financial year are stated excluding VAT and are before year end accounting adjustments including revenue recognition, loyalty scheme accounting and customer returns provisions.
2. On 19 August 2024, the Group acquired the brand and certain assets from CTD Tiles Limited. The business currently trades from 23 stores, down from 31 in the prior year due to commercial property decisions and the requirement to dispose of four stores following CMA investigation.
3. Topps Tiles like-for-like revenue is defined as online revenue generated through Topps Tiles' digital channels, and revenue from Topps Tiles stores that have been trading for more than 52 weeks, compared to the same period in the previous year.
4. Market performance as defined by Barclays "UK Consumer Spend Report" for Home Improvements & DIY tracking at -2.1% for April 2026 and -1.0% for May 2026 (June report not published at time of writing this Trading Statement).
5. Adjusted Profit Before Tax differs from the statutory profit before tax as it excludes the effect of one-off or fluctuating items, allowing stakeholders to understand results across years in a more consistent manner.
The person responsible for making this announcement on behalf of the Company is Joanne Steer, Head of Legal and Company Secretary.
For further information please contact:
Topps Tiles Plc
Alex Jensen, CEO 0116 282 8000
Caroline Browne, CFO
Citigate Dewe Rogerson 020 7638 9571
Angharad Couch
Jonah Boon
Disclaimer
Some of the information in this document may contain projections or other forward-looking statements regarding future events or the future financial performance of Topps Tiles Plc and its subsidiaries (the Group). You can identify forward-looking statements by the terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might", the negative of such terms or similar expressions. Topps Tiles Plc (the Company) wishes to caution you that these statements are only predictions, and that actual events or results may differ materially and as such undue reliance should not be placed on these statements. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group, including among others, general economic conditions, the competitive environment as well as many other risks specifically related to the Group and its operations. Past performance of the Group cannot be relied on as a guide to future performance. Please see the most recent Annual Report and Accounts of Topps Tiles Plc and other disclosures through the Regulatory News Service ("RNS") for further details of risks, uncertainties and other factors relevant to the business and its securities. The information in this trading statement is unaudited.
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