Topps Tiles sees sales growth in golden quarter as CEO Rob Parker announces retirement

Topps Tiles has reported a resurgence in sales growth during the golden quarter, driven by trade demand. The company's CEO, Rob Parker, also announced his retirement after five years of leadership.

Sales during the golden quarter increased by 4.6 per cent year on year, while sales during the shorter festive period – encompassing Black Friday, Christmas and Boxing Day – rose by 12.9 per cent, as reported by City AM.

Following this announcement, Topps' stock price saw an early trading increase of nearly four per cent.

Despite experiencing a drop in sales last year due to what the retailer described as a "weaker" market and homeowner reluctance to DIY, like-for-like sales for the fourth quarter were 8.2 per cent lower year-on-year, even though trading levels "remained stable". The tile retailer attributed the sales improvement in the first quarter of its financial year to trade revenue from both its tile offering – Topps Tiles – and its trade tools segment, Pro Tiler Tools.

The total number of active traders registered with Topps increased seven per cent year on year to 141,000, the company revealed, while sales at Pro Tiler Tools grew by 20 per cent year on year in the first quarter.

CEO Rob Parker commented: "We are pleased to see the Group return to sales growth in the first quarter of the new financial year, supported by our strong trade offer and continued strategic progress, particularly with our digital and omnichannel growth initiatives."

"While it is early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results."

Analysts at Peel Hunt noted that Topps has "enjoyed a much stronger end to [the first quarter] than we expected", although they left their forecasts unchanged.

They added that "strategic progress continues to show clear momentum", rating the stock a ‘Buy’ with a target price of 70p.

The company's acquisition of CTD Tiles out of administration is currently under a "routine" CMA merger inquiry, with a decision due by 17 February 2025.

Until the review process concludes, Topps must refrain from integrating the CTD Business into the company.

In other news, the company announced that Rob Parker, who joined the retailer in 2007 and has served as chief executive since 2019, will step down from his role towards the end of 2025.

Parker will stay on "until an appropriate successor has been appointed", a search for which has already begun, according to the company.

Paul Forman, Chairman, commented: "Rob has made an enormous contribution to the development and success of the business over the last 18 years."

He added: "During his time as CEO, he has overseen a period of significant diversification and growth of the business, and has led the Group through a particularly volatile period for the UK economy, including the Covid pandemic."