DIYers and trade customers have continued to push up sales at Topps Tiles, amid warnings profit margins will drop due to pressures of inflation.
The retailer – which wants to win £1 in every £5 spent on tiles in the UK in the next three years – said sales were marginally up in the last three months of 2021, compared to a year earlier.
And they were 21 per cent up on the same period pre-Covid in 2019.
Like many companies, Topps said it was doing what it could to mitigate the impact of inflation and increased freight costs on profits and retail prices.
In a quarterly trading update the Leicestershire-headquartered business said: “Compared to last year, we saw good levels of trading extending further into December as our customers sought to finish projects by Christmas.
“During the quarter, we have taken significant steps to fully mitigate or pass through cost pressures caused by higher shipping costs and general inflation in cost of goods, thereby protecting gross profit.
“However, as selling prices will increase by a lower percentage than cost prices, we do expect percentage gross margins to be moderately lower year-on-year as a result.”
The first Topps Tile store opened in 1963 and the business is now the UK's biggest specialist supplier of tiles and tiling products, with 314 stores, five commercial showrooms and three trading websites.
The business said it was holding higher levels of stock to help overcome global supply chain challenges affecting many UK importers, and was well placed in the marketplace.
The update said: “Like many businesses, we are currently experiencing higher levels of staff absence due to confirmed or suspected Covid-19 infections, however our teams have responded superbly to this challenge and our stores are well-equipped to deal with more stringent social distancing.
“Our strong operational focus and award-winning website position us well to trade through any period of tighter restrictions.”
Chief executive Rob Parker said: "We have made an encouraging start to the new financial year, with strong customer demand during the first quarter and like-for-like sales growth on both a two year and one year basis against tough comparatives.
“Global supply chain challenges, higher staff absence due to Covid-19 and material cost price inflation continue to provide significant headwinds, however we are managing these challenges effectively.
“I am confident that our successful strategy and strong balance sheet leave us well-positioned to deliver sustainable long term growth and our 20 per cent market share goal of '1 in 5 by 2025'."
