US firm Rocky Mountain Chocolate Factory has warned that profits could fall over the next 12 months if the country’s economy fails to improve.
The gloomy outlook meant the company failed to give sales and earnings forecasts for its 2009 financial year.
The caution came despite a rise in earnings for the year to the end of February. Net income rose 5% to US$5m as revenue inched up 1% to $31.9m.
However, sales and earnings dropped during Rocky’s fourth quarter and COO and CFO Bryan Merryman said the company had seen a “very difficult” retail environment during the last six months
Merryman added: “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.”