Updating on third-quarter trading, the tile specialist said group revenues had fallen by more than expected, down 1.8% to £75.6m in the 39 weeks to 27 June. Like-for-like revenues were flat.
Topps Tiles said trading had been affected by prior year store closures, "challenging" market conditions - with macroeconomic concerns leading to greater demand for lower margin products - and the recent heatwave temporarily halting work among some housebuilders and traders.
As a result, the FTSE 250 firm now expects annual adjusted pre-tax profit to come in "above £6.5m", sharply down on last year’s £9.2m. At the interim results, Topps Tiles had forecast "modest" profit growth for the full year.
The stock had fallen 8% to 33p by 0930 BST.
Alex Jensen, chief executive, 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."
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