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Profit Warning From Thorntons

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Profit Warning From Thorntons

Profit Warning From Thorntons
May 04
13:46 2011
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UK confectionery manufacturer and retailer Thorntons has warned that poor trading over the important Easter period coupled with the ongoing challenging retail environment will result in profit before tax and additional impairment charges for the year to June 25th 2011 being in the £3.0m to £4.5m range, significantly below the £6.1 million achieved last year.

In its third quarter trading update, Thorntons reveals that while overall group sales since January were down slightly by 0.7%, the hot weather conditions over the Easter trading period significantly impacted its own stores, franchise and Thorntons Direct channels. Despite two key trading periods, Christmas and Easter, being affected by unprecedented weather conditions, total sales for the year to date increased by 2.9% compared to the same period last year.

“The past quarter has been extremely challenging particularly in our own stores and for franchisees and we foresee the prospect of this weakness in high street footfall and spending continuing. We have taken a number of actions including adjusting our trading strategy and aggressively managing our overhead costs, as well as ensuring that our production is geared to likely demand,” comments Jonathan Hart, chief executive of Thorntons. The confectionery group, which is currently celebrating its 100 anniversary, is in the process of a strategic review of its business to determine ways of meet these challenges.

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