UK confectioner Thorntons said trading for the fourth quarter is in line with expectations despite recording a drop in sales and announcing 35 job cuts.
Overall company sales for the final quarter declined by 4.1% to GBP26.8m (US$40.8m). This compared to a 3.1% increase in total sales in the previous quarter.
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For the 10 weeks to 26 June, own-store sales declined 6.2% to GBP17.5m and like-for-like sales declined by 6%.
Sales of Thorntons branded products, excluding private label, grew by 4.7% but declined slightly in the final quarter by 1.1%.
Despite this, Thorntons said it is looking to improve own store performance by strengthening the management team and implementing a staff restructuring programme, leading to 35 head office job cuts over the next three months.
“As announced in May, own stores sales have continued to experience like for like sales declines, in part due to higher than anticipated discounting of excess stocks, which have now been cleared,” the firm said.
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By GlobalDataDespite this, franchise sales increased by 20.2% to GBP1.6m during the quarter as the prior year comparator was impacted by the effect of the Birthday stores going in to administration.
Thorntons Direct sales grew by 17.1% to £0.9m.
