While Thorntons enjoyed an increase in sales online and to supermarkets, its own-branded stores and franchise operation took a knock in the 28 weeks to January 7.
Overall turnover for 2006 was down on last year, from£119.7 million to£112.3 million, with profit before tax down from£13.3 million to£12.8 million.
Own-shop total sales were 6.4 per cent lower, at£80 million for 369 shops. The company had eight fewer stores than last year. On a like-for-like basis, sales were 4.8 per cent lower, which was heavily influenced by a 'disappointing performance' at Christmas.
However, the decline in like-for-like sales, especially over the Christmas period, prompted the company into a heavy promotion strategy, offering new seasonal ranges for the rest of the year including Valentine's Day, Mother's Day and Easter. As a result, the company experienced 'less of a decline' in like-for-like sales in the Valentine's fortnight compared with last year.
Thorntons Direct enjoyed an increase in like-for-like sales, up 3.5 per cent to£3.5 million. Thorntons Direct and its commercial channels will feature more promotions and incentives throughout the year.
The company also enjoyed an increase in sales to supermarkets, up 0.7 per cent, but suffered an 'expected reduction to high-street retailers' following a decision to withdraw the accounts earlier in the year.
Thorntons acting chairman John Jackson said: 'Despite very tough trading conditions, the actions taken by management to improve like-for-like sales, tighten costs and control margin should ensure that the results for the full year will be in line with our expectations.'
No comments yet