With the heatwave in the UK continuing, consumers are more likely to want ice cream than chocolate.
So shares in Thorntons shares have melted more than 7%, despite the company reporting an upbeat trading statement. It said fourth quarter sales climbed 5.6% to £26.8m as it continued its strategy of shutting unprofitable stores and concentrating on selling its products through other outlets such as supermarkets. It said the latter business - the commercial operation - would become its largest division by the end of the financial year.
Thorntons' also repeated its comment from a 2 July statement that full year profits before tax and impairment and lease charges would be ahead of market expectations of £4.6m.
But it described the trading environment as "challenging" and its shares have fallen 7.25p to 89.75p. Retail expert Nick Bubb said:
It's a good job that Thorntons' financial year ran to 29 June 29, as the hot weather ever since then will not have helped chocolate and fudge sales, even if some shops also sell ice-cream now. Still, the strategy of pushing "commercial" sales to supermarkets etc and shrinking the retail exposure seems to be working, with Thorntons confirming today that the year just ended saw a better than expected profit outcome.
