Topps Tiles (LSE: TPT) shares jumped 8.8% on Wednesday after the retailer delivered a surprisingly solid third-quarter update, showing real momentum across both trade and online channels.
Group-adjusted sales (excluding CTD) rose 10% year-on-year in the 13 weeks to 28 June, more than doubling the growth rate from the first half. Like-for-like sales at its core Topps Tiles brand were up 7.3%, and the number of active trade customers climbed 12% to 150,000, a clear sign the trade segment remains the engine of growth.
Online sales now account for nearly 22% of the mix, up from under 20% earlier in the year, as the company continues to lean into its multichannel strategy. Management expects gross margins in the second half to come in “slightly higher” despite cost headwinds from National Insurance and wage hikes.
The CTD unit, recently cleared for full integration, remains a work in progress but is on track to break even by Q4. Meanwhile, Topps is pressing ahead with its “Mission 365” plan, which includes digital upgrades and category expansion.
None of this is revolutionary, but it does suggest Topps is finding its feet after a sluggish patch. With sales picking up and operating costs under control, the company might finally be tiling together something more durable.