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(Sharecast News) - Topps Tiles warned on profits on Wednesday, sending shares in the retailer sharply lower, after soaring temperatures compounded already tough market conditions.
Updating on third-quarter trading, the tile specialist said group revenues had fallen by more than expected, down 1.8% to 75.6m in the 39 weeks to 27 June. Like-for-like revenues were flat.
Topps Tiles said trading had been affected by prior year store closures, "challenging" market conditions - with macroeconomic concerns leading to greater demand for lower margin products - and the recent heatwave temporarily halting work among some housebuilders and traders.
As a result, the FTSE 250 firm now expects annual adjusted pre-tax profit to come in "above 6.5m", sharply down on last year's 9.2m. At the interim results, Topps Tiles had forecast "modest" profit growth for the full year.
The stock had fallen 8% to 33p by 0930 BST.
Alex Jensen, chief executive, said: "Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products. We're making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth."
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