Rocky Mountain Chocolate Factory has posted a drop in revenues for the first quarter ended 31 May.

The US company reported revenue of US$7.1m compared to around $7.3m in the same quarter of fiscal 2008.

Same-store sales at franchised retail outlets decreased 2.5% during the most recent quarter, while same-store pounds of confectionery products purchased from the company's factory by franchisees declined 14% compared with the same period in FY2008.

"In light of widely reported weakness in retail sales throughout the US and lower foot traffic in most shopping environments where we have stores, we are pleased to report record first quarter basic earnings per share and only a slight decline in revenues, when compared with the prior-year period," said COO Bryan Merryman.

Net earnings for the three months declined 2.6% to $1,004,000, compared with $1,032,000 in 2007. Basic earnings per share increased 6.3% to $0.17, versus $0.16 in the first quarter of FY2009.

Total retail sales for the company's franchised and company-owned stores increased 2.4% to a first-quarter record of around $26.6m, compared with around $26m for the previous year.

"If recent economic and consumer spending trends continue but do not deteriorate further, we are likely to report a modest decline in earnings for the current fiscal year," Merryman added.