Britain’s Topps Tiles warns of falling profit margins due to cost headwinds

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Signage is seen outside a branch of Topps Tiles, London, Britain September 30, 2020. REUTERS/Toby Melville

Jan 12 (Reuters) – Topps Tiles (TPT.L) said on Wednesday it expects annual gross margins to be “moderately lower” than a year ago as the British tile retailer struggles against rising shipping and input costs.

“Global supply chain challenges, increased staff absences due to COVID-19 and material price inflation continue to create significant headwinds,” Chief Executive Rob Parker said in a statement. communicated.

The company, which focuses on renovating, maintaining and improving homes in the UK, also said it had passed the higher costs on to consumers, but selling prices would rise by one year. percentage below cost price.

Topps Tiles comparable retail sales for the 13 weeks ending January 1, 2022 increased 1%, compared to a 20% increase a year ago.

The company added that it was holding higher inventory levels than in the past, to alleviate supply chain challenges.

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Reporting by Priyanshi Mandhan and Yadarisa Shabong in Bengaluru; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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