The recent extreme heat has added to trading woes at retailer Topps Tiles as it warned over annual profits after worse-than-expected sales and soaring temperatures led to tradesmen pausing work.
The Leicestershire-based tile chain said sales fell 1.8% in the three months to June 27, with flat like-for-like revenues across its main Topps Tiles brand, which worsened through the quarter.
It has seen demand grow for lower priced products due to wider uncertainty among customers, adding that the searing heat at the end of June compounded trading issues.
Topps said: “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.”
The group said it now expects underlying profits for the year to the end of September to be above £6.5 million – signalling a sharp fall from the previous year’s £9.2 million.
Shares in the firm fell 8% soon after market opening on Wednesday.
Alex Jensen, chief executive of Topps, 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.”
The group has been slashing costs in the face of more difficult trading and in April announced 23 shops were being shut – 7% of its 319-strong estate.
Store closures in its Topps and CTD brands have further put revenues under pressure.
Topps saw its deal to buy CTD out of administration probed by the Competition and Markets Authority (CMA), which required it to sell off a number of CTD stores to appease concerns.
The firm now has 23 CTD stores, down from an initial 31.
In December, it also bought the brand of collapsed rival Fired Earth in a £3 million rescue deal after the Oxfordshire-based competitor tumbled into administration in October, resulting in the closure of its 20 UK showrooms and 133 job cuts.
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