StockMarketWire.com - Flooring retailer Topps Tiles said it achieved a modest rise in first-quarter like-for-like sales, but warned supply chain pressures would hurt its margins.

Like-for-like sales at the company's main retail business in the three months through December rose 1% year-on-year, though were up 21% on a two-year basis, the company said.

'Compared to last year, we saw good levels of trading extending further into December as our customers sought to finish projects by Christmas,' it added.

Topps Tiles said it had taken significant steps to fully mitigate pass through cost pressures caused by higher shipping costs and general inflation in cost of goods.

'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,' it said.

In the budding commercial tiles business, sales in the first three months of the company's financial year were up about 21% year-on-year.


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