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.
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.”
