UK's Topps Tiles First-Quarter Revenue Rises on Strong Demand

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British tile retailer Topps Tiles reported a 3.7% rise in first-quarter revenue, excluding CTD—a tiles business acquired in 2024—on January 7, 2026. The increase was driven by resilient demand from its trade customer base of builders and contractors. The company attributes the growth to the strength of its trade business and strategic category extensions according to company reports.

The Topps Tiles brand delivered 2.0% like-for-like growth in the first quarter, marking the fifth consecutive quarter of growth. The trade sales division, which includes builders and contractors, contributed a 3.7% year-on-year increase. This performance highlights the continued strength of the trade market in the UK.

Topps Tiles also announced the acquisition of the Fired Earth brand, website, and stock in December 2025. The acquisition was part of the company's strategy to expand into the premium market. The brand now has a fully operational supply chain and transactional website, with strong customer demand for its products according to company statements.

Why Did This Happen?

The strong first-quarter performance reflects the company's ability to capitalize on resilient demand from trade customers. Builders and contractors continue to rely on Topps Tiles for their tile needs, even in a challenging economic environment. The 3.7% growth in trade sales was a key driver of the overall revenue increase as reported.

The company also expanded its product offerings through the acquisition of the Fired Earth brand. This move is aimed at capturing a larger share of the premium tile market, which has shown steady demand despite broader economic challenges according to market analysis.

How Did Markets React?

Topps Tiles reported a 2% increase in like-for-like sales in the first quarter to December 27, 2025. The growth was supported by a 3.7% advance in its trade business. This performance outperformed broader market trends, indicating that Topps is gaining market share according to retail data.

Including the CTD business, which Topps acquired in August 2024, Group sales grew by 1.6% in the quarter. The CTD operation now operates from 22 stores, down from 31 in the previous year, but achieved like-for-like growth of 4.7% according to financial reports.

What Are Analysts Watching Next?

The company has completed its final CMA disposal store in December, concluding the CMA process. Topps expressed confidence in its ability to deliver a profit in CTD by the 2026 financial year. The CMA process has been a key strategic initiative for the company according to company disclosures.

Digital sales remain a focus area for Topps Tiles. Online revenue accounted for 19.7% of total Group revenue in Q1, an increase of 70 basis points compared to the full 2025 financial year. This growth reflects the company's ongoing efforts to expand its digital footprint and improve customer engagement as reported.

The company is also accelerating its digital capabilities to enhance its trade strategy. This includes improving customer experience and streamlining operations to better serve its trade customers. The CEO noted that the company is 40% of the way toward its 'Mission 365' strategy, which aims to achieve £365 million in sales with an 8-10% net margin according to company statements.