Shares in Thorntons have lost 12% after the chocolate retailer warned on profits and revealed that chief executive Mike Davies was stepping down.
The company said its stores had continued to see like-for-like sales declines since it last reported in April, and it has had to offer higher than expected discounts to get rid of excess stock. Sales through commercial channels also saw a temporary decline but have since recovered.
Davies, who joined as chief executive in 2006 and was previously with Mars and Procter & Gamble, has decided to leave, apparently because he thinks he is no longer the man for the job. But he will stay on until a replacement is found.
According to the company Davies believes that "in the light of new challenges, principally the management of Thorntons' retail estate... a chief executive with specific retail expertise is required to lead the business."
On a day when even good news is being disregarded, a profit warning was always going to get a bad reception. And so it has proved, with Thorntons' shares down 12p at 88p.
