A LEAP in sales of chocolate boxes through supermarkets has helped Thorntons avoid a repeat of its previous year’s dismal Christmas performance.
The group told investors yesterday that its “commercial” sales grew strongly, up 26.4 per cent to £34.7 million in the 14 weeks to 12 January, against a 1.3 per cent decline in like-for-like sales in its store estate.
Chief executive Jonathan Hart said he was pleased with overall progress, which compares favourably with the profits warning issued in the run-up to the previous festive trading period.
He added: “We have grown market share and demonstrated the continued strength of the Thorntons brand despite a challenging economy and a weak confectionery market.”
The group is leading a drive to reduce reliance on Christmas and Easter as part of a turnaround that saw it close 27 under-performing stores in the last year to focus on a core estate of 180 to 200 sites.
It currently has 317 of its own stores and 189 franchise outlets.
Thorntons noted that its share of the market for boxed chocolates sold through commercial channels increased from 11.7 per cent to 12.1 per cent in the 14-week period as it looks to rebalance its routes to market.
With overall sales up by 5.4 per cent to £88m in the quarter, Hart added that the company was on course to meet profit expectations for the year to June.
Panmure Gordon analyst Philip Dorgan said the update was a good one, given the unhelpful economic conditions.
He added: “This is quite a contrast to last year, when Thorntons issued a profit warning before Christmas and a clear sign that its strategic plan to rebalance its sales towards commercial, and thereby restore its profitability to industry-competitive returns, is beginning to work.”