Thorntons reports further growth in first quarter of 2008/2009

The British chocolate manufacturer and retailer Thorntons plc has reported its first quarter trading update for the 14 weeks up to and including 4 October 2008. According the press release, total sales grew by 6.4% to GBP 45.7 m, bucking the economic doom and gloom enveloping the retail sector. Like for like sales for the period grew by +0.9% against strong prior year comparatives.


In details, own store sales increased by 4.9% to GBP 26.6 m. Franchise sales were up by 2.4% to GBP 3.4 m, and commercial sales grew by 11.0% to GBP 14.5 m. Thorntons Direct sales increased by 0.7% to GBP 1.2 m. Direct sales to consumers from the call centre and the web site continued to grow with an increase of 7.6% but Thorntons saw a decline in its corporate business during the quarter.


Mike Davies, Thorntons’ Chief Executive, commented: “We are pleased with the overall growth of 6.4% in the first quarter, particularly against the backdrop of our strongest quarter of growth last year and a difficult wider retail trading environment. Our financial position remains strong and we continue to grow in all channels and remain focused on delivering against our strategy of long term profitable growth through product innovation, improving the in-store environment and excellent customer service.“


Thorntons said it had overhauled its brand and introduced new products, including ice cream, to reduce its dependency on sales at Easter and Christmas. In fiscal year 2007/2008 (ending 28 June), Thorntons turnover was grown by 11.9% to GBP 208.1 m, and profit before tax was up 19.6% to GBP 8.5 m.