UK confectioner Thorntons has maintained a cautious outlook, despite seeing some improvement in sales trends during the fourth quarter.
The company, which sells chocolates through supermarkets as well as its own and franchised stores, said today (11 July) total sales for the nine-week period to 30 June rose 7.8%.
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Like-for-like sales from Thorntons’ own stores reversed their recent decline, gaining 0.7% in the period. Commercial sales through retail channels trebled as they were boosted by product launches. However, franchised store sales were hit by the collapse of the Clinton Cards chain.
Thorntons has been plagued by a run of poor results and profit warnings. In a bid to improve profitability the firm embarked on a restructuring programme that will see it close a total of 180 owned stores.
The company hopes to reduce its reliance on this revenue stream by upping its focus on franchised stores and its commercial arm. However, there are those who would warn that by becoming just another name on a supermarket shelf, Thorntons is at risk of devaluing the brand and therefore inhibiting its ability to charge a price premium.
CEO Jonathan Hart said he was “encouraged” by the result but said the chocolatier remained “cautious” on the outlook for the remainder of the year.
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By GlobalDataClick here for coverage of Thornton’s conference call with analysts on its fourth-quarter sales.
