Thorntons warns on profit
Chocolatier Thorntons has warned on profit after it was impacted by lower orders from supermarket customers and problems at its warehouse.
In statement issued today, the retailer said it had been affected by a “significant” reduction in previously indicated orders from the major supermarkets who also took in stock later than anticipated. This means that sales at the UK commercial channel will be down in the second quarter.
It added: “While there has been an overall decline, the performance in the grocers has been mixed with good growth in several of our major partners yet significant volume decline in some others where prior year sales of high-volume lines have not been repeated. We have also seen good growth in the convenience and high street sectors.”
The retailer also experienced some short-term difficulties with its new centralised warehouse which resulted in lost and late sales at its UK commercial channel, although the facility is now working normally.
Never Miss a Retail Update!Thorntons said it now expects full year earnings to be below those of the previous year.
Looking ahead, the retailer said: “The board remains confident in its strategy, multi-channel approach and ongoing transformation. A further trading update will be issued on 19 January 2015.”
