Tile specialist Topps Tiles Plc has reported strong trading momentum through the third quarter.
According to its Q3 trading update for the 39-week period ended 28 June 2025, Group adjusted sales were up 10.1%, a notable acceleration compared to 4.1% growth in the first half. On a year-to-date basis, Group adjusted sales were 6.1% higher year-on-year.
The sales trajectory has improved across all divisions in the Group, with Topps Tiles, Parkside and Online Pure Play (Pro Tiler Tools and Tile Warehouse) all delivering higher growth rates in the most recent quarter than in the first half.
Like-for-like sales in the Topps Tiles brand increased 7.3% in the third quarter and are up 4.4% on a year-to-date basis. Trade sales remain stronger than homeowner sales, although sales to homeowners are also showing signs of improvement.
The stronger sales growth was underpinned by further increases in Topps Tiles’ active trade customers, up 12% year-on-year to 150,000, and Group online sales, which accelerated from 19.8% of adjusted sales in the first half to 21.9% of adjusted sales in the third quarter.
“Adjusted gross margins continue to improve and we expect Group adjusted gross margin in the second half to be slightly higher than in the first half of the year,” Topps said. “As previously noted, the cost environment does continue to remain challenging, with c. £4 million of further cost increases on an annualised basis from April 2025 as a result of the recent changes to National Insurance rates and thresholds, together with the increase in National Living Wage.
“In addition, the Group expects performance-related pay to be higher in the second half, as profits increase. Given the strong growth in sales, improved gross margins and cost management actions, the Group expects operating costs in the second half to grow at a lower rate than gross profits.
“Rapid progress has been made in CTD since the conclusion of the CMA investigation and the Group remains confident that CTD will be at least breakeven by the fourth quarter. Following this period of stabilisation, the Group will seek to meaningfully grow this strategically important business in 2026 and beyond, particularly expanding the Group’s activities with larger contractors, commercial partners and housebuilders.
“Good strategic progress continues across the five main growth levers which will deliver the Group’s ‘Mission 365’ goal: modernising the trade digital experience, expanding into new coverings categories, increasing the business-to-business sales focus, growing Pro Tiler Tools and establishing Tile Warehouse.
“During the quarter, the business has been preparing to relaunch the Topps Tiles trade website, providing enhanced functionality, and is in the final stages of preparation for the launch of a new customer engagement platform, which will provide a step-change in the Group’s ability to interact digitally with customers, including personalised marketing.”
