Topps Tiles holds revenue steady while outperforming weak DIY market

Topps Tiles (LSE:TPT), the UK’s largest tile specialist, reported first-half group revenue of £142.7 million, broadly unchanged from the previous year, while continuing to outperform a Home Improvements and DIY market estimated to have declined by around 2.5%. Revenue excluding CTD rose 2.1%, with like-for-like sales increasing slightly by 0.1%. Meanwhile, CTD locations returned to like-for-like growth as demand from housebuilders began to recover.

Amid softer consumer spending and ongoing cost pressures, the group has introduced a series of operational measures aimed at protecting profitability. These include the planned closure of 23 underperforming Topps Tiles stores as management prioritises margin improvement over top-line growth. At the same time, the company is accelerating its digital and data strategy. Online revenue now accounts for 21% of total sales, supported by strong growth at its online-focused Pro Tiler brand and improving performance from Fired Earth. These initiatives are expected to support profit growth during the current year and strengthen the group’s operational position heading into 2027 and beyond.

Topps Tiles’ outlook is supported by improving underlying fundamentals and strong cash generation, alongside an attractive valuation characterised by a moderate P/E ratio and a relatively high dividend yield. However, the company continues to face challenges including elevated leverage and weaker technical indicators, with the share price trading below major moving averages and signalling bearish momentum. Commentary from the latest earnings call suggests a cautiously positive outlook, although execution risks and cost pressures remain factors to watch.

More about Topps Tiles

Topps Tiles is the UK’s largest specialist retailer of tiles and related products, supplying domestic, trade and commercial customers as well as housebuilders. The group serves homeowners, contractors, architects and designers through a network of 289 Topps Tiles stores, 22 CTD outlets, a commercial showroom in London and ten transactional websites across its various brands.