UK: Thorntons shares melt after profit warning
Thorntons has announced it expects flat profits for its fiscal year
Shares in UK chocolate retailer Thorntons plummeted today (21 December) after it warned its annual profits would miss expectations.
The value of the struggling high street confectioner's shares dropped 36% to 24 pence after it forecast it would break even, compared to a previous outlook of GBP3.8m (US$6m) profit. It blames weak consumer confidence and promotions from competitors.
"Following continued weakness in consumer sentiment and high levels of promotional activity in the marketplace, the board now considers profits for its full year will fall short of current expectations," Thorntons said.
"The board now believes that profit before taxation, exceptionals and impairment and onerous lease charges will be around break even for the 53 weeks ending 30 June 2012.
A further trading update will be issued on 12 January 2012, the company said.
In September the company booked a pre-tax loss of GBP1.1m (US$1.75m) for the fiscal year to 25 June, compared to pre-tax profits of GBP6.1m the year before.
Thorntons has booked a drop in third-quarter sales as store closures and a difficult trading environment dented the chocolate group's result....
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