International designer, manufacturer and distributor of innovative flooring, Victoria PLC, has reported lower sales due to weak consumer confidence and footfall.

According to its latest trading update and outlook for FY2026, the year-on-year revenue trend in Q3 improved showing a c.3% decline vs c.7% decline in H1.

“Lower shipment volumes as the Rugs business transitions manufacturing from Belgium to Turkey accounted for over half of the revenue decline in Q3,” Victoria said. “This was partially offset by ongoing market share gains and customer wins in UK Carpets, and a strong performance in Australia in particular. Excluding Rugs, year-on-year revenue declined approximately 1.5% in Q3.

“Trading in the first half of January, however, was significantly impacted by weak consumer confidence and weak footfall at our end customers due to geopolitical events across our key markets: western Europe; North America and the UK.

“Whilst recent weeks have shown improvements in trading, the board now expects Q4 revenue to be below its previous expectations and approximately 5% below FY25.

“As a result, the board expects post-IFRS16 EBITDA to be approximately £95m for FY26 as a whole.”

The group previously stated that it expected EBITDA of £110.7m.

Victoria added that the first sales from the new V4 ceramics line in Spain are being delivered in Q4, which will drive growth and improved EBITDA in its Spanish ceramics business through FY27 and beyond.

Furthermore, the relocation of Rugs manufacturing from Belgium to Turkey also continues to progress in line with expectations, albeit shipping disruptions have been greater than anticipated, while the first stages of integrating its UK Underlay businesses and Australian businesses are expected to be completed before the end of March.

“Whilst a lower starting point on volume will reduce the outlook for 2027, the currently disclosed EBITDA improvement initiatives remain on track, and further EBITDA improvements have been identified across the divisions and will be quantified as part of the ongoing budget process,” Victoria said.

“The board and business recognises the need to continue to adapt to the lower volume environment and drive efficiency improvements ahead of both domestic and international competition within its local markets.

“Increased rigor in tracking these improvements is being implemented along with broader governance improvements, and further detail of these initiatives will be provided in due course.”