News is reaching us that Thorntons has announced a profit warning after poor sales this Easter due to more people buying their Easter eggs in supermarkets due to their cheaper prices.
I don’t expect sales were helped by the poor weather either as sales in their shops for the quarter to April 17th were down 4.9% and contributed £1.4m lower sales than forecast to “just” £7.5m.
Also they sold a third more of their products than the previous year via other retailers which meant they had lower margins. Their franchise sales fell 20.6% which is stagering, but their Thorntons Direct service grew 32.4% to £2.5m
As a result of this Thorntons shares fell 10%.
We think Thontons are fab so I’m sure they’ll bounce back as the economy returns.
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