Sales at upmarket jeweller Theo Fennell plummeted 11% year-on-year in December and it now expects to make a loss in its current year.

The jeweller said it was “disappointing” performance as it had traded well across all stores in the first 8 months of its financial year until the end of November.

Theo Fennell is now looking to restructure its cost base.

The retailer said sales at its flagship store in Fulham and City of London stores were up over Christmas but weaker performance in its other outlets brought the overall group sales down.

It is also eyeing new international markets in the year ahead and will develop its wholesales network.