Thorntons has issued a profit warning after poor consumer spending and heavy high street promotions hit performance.
The 100-year-old chocolatier warned that its full year profits will miss expectations and it expects only break even this financial year.
The retailer said: “Following continued weakness in consumer sentiment and high levels of promotional activity in the market place, the board now considers profits for its full year will fall short of current expectations.
“The board now believes that profit before taxation, exceptionals and impairment and onerous lease charges will be around break even for the 53 weeks ending June 30, 2012.”
In June, Thorntons revealed it is to close up to 180 of its own shops over the next three years and its share price has fallen 60% in the last 12 months.
The chocolatier recorded a sales fall of 7.6% in the fourteen weeks to October 1 at last update. A trading update will be issued on January 12, 2012.