Topps Tiles PLC Q3 Trading Update (1069K)
July 05 2017 - 02:00AM
UK Regulatory
TIDMTPT
RNS Number : 1069K
Topps Tiles PLC
05 July 2017
5 July 2017
Topps Tiles Plc
Q3 Trading Update
Trading
Topps Tiles Plc (the "Group"), the UK's largest tile specialist,
announces a trading update for the 13 week period ending 1 July
2017.
Like-for-like revenues for the 13 week period decreased by
4.7%.
Trading over the third quarter reflects continued weaker
macro-economic conditions this year and a strong period of
performance in the prior year when the business was benefiting from
the increased level of housing transactions resulting from the
Stamp Duty changes in April 2016.
The Group is now trading from 367 stores (2016: 348), having
opened a net nine stores during the quarter. We anticipate ending
the year with approximately 370 stores.
Analysis of LFL sales by quarter
Q1 Q2 First Half Q3
--------- --------- ---------- ----------- ---------
FY 2017 +0.3%(1) -4.1% (2) -1.9% (3) -4.7%(4)
--------- --------- ---------- ----------- ---------
FY 2016 +4.4% +4.9% +4.7% +6.2%
--------- --------- ---------- ----------- ---------
(1) Quarter 1 in 2017 included one additional trading day due to
the timing of public holidays which we estimate increased LFL sales
growth by c.0.6%. This effect reversed during the second
quarter.
(2) Quarter 2 2017 included the loss of a trading day explained
in (1) above and also the effect of a later Easter which generated
one additional trading day. These two adjustments broadly offset
each other over the quarter.
(3) The net impact of (1) and (2) over the first half of 2017
was one additional trading day which benefited LFL sales growth by
c.0.3%.
(4) Quarter 3 2017 includes the loss of a trading day, due to a
later Easter, when compared to the prior year. The impact of this
is to reduce LFL sales by approximately 0.6%.
Strategic Progress
We continue to invest in the business and make good progress
with our strategy of "Out-Specialising the Specialists", with
specific initiatives in the period including:
* Inspiration - Almost all of our customers visit both
our website and one of our stores at some stage in
their shopping journey. We are focussed on making
this combined store and digital experience as
inspirational as possible. During the period we have
generated 20,000 personalised digital brochures, with
over 90% of these generated in store, assisted by our
store colleagues.
* Range - We have launched 34 new tile ranges over the
last 12 months and these ranges accounted for 9.7% of
our tile sales for the year. 80% of our tiles are
either own brand or exclusive.
* Trade - Our Rewards+ loyalty scheme for trade
customers continues to gain momentum, with over
50,000 traders now collecting points. In addition, we
continue to ensure that we lead our market by
offering the best value to our trade customers.
* Commercial - We continue to explore opportunities to
expand our presence in the commercial tile market
through a small acquisition and are in active
discussions. We plan to provide a more detailed
update on the opportunities in the commercial tile
market as part of our year end results presentation.
* People - During the quarter we commenced the roll out
of our updated "Natural Service" training programme
to further improve the specialist service we give to
our customers.
Matthew Williams, Chief Executive Officer, said: "At the time of
our interim results in May we pointed to a more challenging
macro-economic environment and this has persisted through the
remainder of the third quarter. Tougher comparatives resulting from
the changes to Stamp Duty in the prior year were a feature
throughout the period and we have seen a modest improvement in
trading over recent weeks as they have begun to ease.
"Against this background, we will continue to extend our market
leadership position by focusing on our proven strategy of
"Out-Specialising the Specialists". In particular, we continue to
evaluate selective acquisition opportunities in the commercial
segment of the UK tile market."
- Ends -
Enquiries:
Topps Tiles Plc 0116 282 8000
Matthew Williams, Chief Executive
Officer
Rob Parker, Chief Financial Officer
Citigate Dewe Rogerson 020 7638 9571
Kevin Smith / Nick Hayns
Note to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated tools and accessories, targeting the UK domestic
refurbishment market and serving a retail and trade customer base
from 367 stores nationwide.
Since opening its first store in 1963, Topps has maintained a
simple operating philosophy - inspiring customers with unrivalled
product choice and providing exceptional levels of customer
service.
For further information, please visit
www.toppstiles.co.uk/media-centre/investors.asp
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUGUGCMUPMGCC
(END) Dow Jones Newswires
July 05, 2017 02:00 ET (06:00 GMT)
Topps Tiles (LSE:TPT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Topps Tiles (LSE:TPT)
Historical Stock Chart
From Mar 2023 to Mar 2024