- Q1 return to sales growth
- Trade and digital businesses shine
- Rob Parker to retire
Topps Tiles’ (TPT) shares rallied 8% to 40.2p after the tile specialist reported a return to sales growth for the first quarter ended 28 December 2024, buoyed by improved trading in the run-up to Christmas.
The kitchen tiles-to-laminate flooring firm also announced that CEO Rob Parker plans to retire after 18 years with the company towards the end of 2025, and that the search for his successor is already underway.
GROWTH BACK ON THE SLATE
Stripping out recent acquisition CTD Tiles, which is under review by the Competition and Markets Authority, Topps delivered a 4.6% rise in group sales for the 13 weeks to 28 December.
Encouragingly, sales in the most recent five weeks of the period - including Black Friday, Christmas and Boxing Day – were up 12.9% year-on-year.
Like-for-like sales in the Topps Tiles business were up 3.5% in the 13 week period with growth accelerating to 12.5% in the most recent five weeks.
Topps Tiles pinned the quarterly sales improvement on the ongoing strengthening of its trade offer, calling out ‘robust growth’ in trade revenues at both Topps Tiles and Pro Tiler Tools.
During the quarter, total traffic to Topps’ digital channels rose by 17% as sales transacted online grew 8%.
PARKER UNDER PRESSURE
‘We are pleased to see the group return to sales growth in the first quarter of the new financial year, supported by our strong trade offer and continued strategic progress, particularly with our digital and omnichannel growth initiatives,’ commented Parker, whose charge has been grappling with weak bigger ticket spending in recent years.
Parker added: ‘Whilst it is early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results, which leaves us well positioned to deliver our goal of Mission 365.’
Promoted from CFO to CEO in 2019, Parker has experienced a mixed five years at the helm of Topps Tiles.
During his hot seat stint, he oversaw a period of significant diversification and growth of the business, which he also successfully steered through the Covid pandemic.
However, his departure follows pressure from major shareholder MS Galleon, which recently called for Topps Tiles to overhaul its senior management and strategy following what it described as ‘costly blunders’ and management’s ‘complete failure’ to adapt to the changing retail landscape.
