Thorntons witnessed a year-on-year sales decline of 2.3% in the 12 weeks to 27 December, the UK chocolatier revealed today (7 January).
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While sales at three out of its four routes to market increased, Thorntons said sales at its own stores fell as the retail environment became increasingly challenging.
Own-store sales during the quarter fell by 5.4% to GBP51.8m (US$77.3m) on a reported basis, while same-store sales dropped by 6.6%. During the period, the company opened three new outlets.
Franchise sales gained 2.7%, rising to GBP6.2m, driven by the addition of nine new franchisees.
Commercial sales saw continued growth of 5.9% to GBP15.6m, thanks to improved distribution among the multiples.
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By GlobalDataMeanwhile, Thornton’s Direct continued to post solid growth, with sales up 3.5% to GBP4m. Within the unit, the company’s online sales gains of 24.7% were offset by a drop in corporate sales.
Sales in the first half of the fiscal year increased by 0.8%, Thornton’s said in a statement to the London stock exchange.
Commenting on the results, chief executive Mike Davies said: “Under these circumstances, the board expects profits for the 28 weeks ending January 10 2009 to be not less than GBP7m with EBITDA in excess of GBP14m.”
