THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Thorntons blames order timings for Q1 sales fall

Chocolatier Thorntons has reported a 12.8% reduction in first quarter sales at its FMCG division which it attributed to the timing of orders.

GENERAL MERCHANDISE

Thorntons blames order timings for Q1 sales fall

Chocolatier Thorntons has reported a 12.8% reduction in first quarter sales at its FMCG division which it attributed to the timing of orders.

The decrease led to an 11.9% fall in overall sales to £41.4 million in the 14 weeks to 4 October although the retailer is confident that it will meet market expectations for pre-tax profit before exceptional items of £9.65 million for the full year. This compares to £7.5 million in the year to 28 June 2014 when profit surged by 60.4%.

Thorntons' chief executive Jonathan Hart said: "As we said in September we anticipated that sales for this quarter would be below last year as a result of the increasingly fluctuating order patterns in our UK commercial channel.

“These fluctuations will become more significant within the context of the company's performance as we continue to grow our FMCG business making quarterly comparisons less meaningful. As we demonstrated last year, these variances do not necessarily affect overall annual performance.”

During the period, sales in Thorntons' retail division declined by 10.9% to £20.6 million as the retailer closed 12 stores to take the number of shops down to 249 at the end of the quarter. Like-for-like sales fell by 3.7% reflecting subdued consumer sentiment and weakness in footfall seen since Easter. Franchise sales declined by 19.1% due to the timing of orders and franchisees experiencing similar weakness in footfall.

Meanwhile, international sales increased by 20.8% and Consumer Direct sales edged up 3.2%.

Looking ahead Hart said: "We remain confident of improving EBIT margin further and maintaining positive profit growth for the full year, in line with market expectations driven by strong annual sales growth in our UK commercial channel.

"We continue to make good progress with our strategy of rebalancing the business and have exciting plans in place for the key Christmas season. We remain mindful that the economic situation is still challenging for many of our shoppers and trade customers, although our growth plans do not depend on an economic upturn."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues