THT Thorntons

TIDMTHT

RNS Number : 6148L

Thorntons PLC

29 April 2015

29 April 2015

THORNTONS

("Thorntons" or "the Company")

THIRD QUARTER TRADING UPDATE

Thorntons today reports on trading for the 15 weeks up to and including 25 April 2015.

Performance over the course of the third quarter in our Retail and FMCG divisions was mixed. While the Retail division delivered positive like for like sales growth over the key spring seasons of Easter and Valentine's Day, lower than expected performance across other weeks in the quarter, including Mothers' Day, resulted in a broadly flat outcome of +0.1%.

As indicated at the time of our interim results, the FMCG division was affected by specific trading issues in our UK Commercial channel, one of which continued into the second half of the year and contributed to an overall sales decline of 6.7%.

FMCG Division

Divisional sales decreased by 6.7% to GBP26.5 million.

-- UK Commercial sales declined by 6.1% due to reduced levels of orders from one customer.

-- International sales, accounting for 2% of overall sales, decreased by 15.1%. Sales have grown by 12.2% for the year to date.

Retail Division

Divisional sales declined by 5.4% to GBP27.7 million.

-- Like for like sales are broadly flat at +0.1% but remain in growth at +1.5% for the year to date.

-- Five stores were closed and one relocated as we right size our retail estate to focus on long-term sustainable locations. This resulted in 243 Own Stores at the end of the quarter.

-- Consumer Direct sales increased by 10.5%.

-- Franchise sales declined by 15.2%.

Jonathan Hart, Thorntons' Chief Executive, commented:

"The sales decline in UK Commercial is now solely due to reduced levels of orders from one customer which have continued into the second half of the year. We are, however, encouraged by positive sales across the balance of our trade partners. Our Easter specialities sold well with these customers and in our Retail channels and we ended the season with clean stocks.

"Looking ahead to our fourth quarter we remain cautious about the outlook for the full year and continue to maintain strict control of costs as the economic situation is still challenging for many of our shoppers and trade customers."

 
 Divisional Sales     Q1    Change     Q2    Change     Q3    Change%    YTD    Change% 
  GBPm                         %                % 
------------------  -----  --------  -----  --------  -----  --------  ------  -------- 
 FMCG Division       20.8   (12.8)%   41.9   (10.3)%   26.5   (6.7)%    89.2    (9.9)% 
------------------  -----  --------  -----  --------  -----  --------  ------  -------- 
 Retail Division     20.6   (10.9)%   44.9   (2.4)%    27.7   (5.4)%    93.2    (5.3)% 
------------------  -----  --------  -----  --------  -----  --------  ------  -------- 
 Total Company       41.4   (11.9)%   86.8   (6.4)%    54.2   (6.00)%   182.4   (7.6)% 
------------------  -----  --------  -----  --------  -----  --------  ------  -------- 
 
 Like-for-like 
  (Retail)                   (3.7)%            +5.0%            +0.1%             +1.5% 
------------------  -----  --------  -----  --------  -----  --------  ------  -------- 
 

Ends

For further enquiries please contact:

Anthony Cardew / Nadja Vetter / Tom Horsman, Cardew Group T: 020 7930 0777

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, Directors and employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this document and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its Directors accept no liability to third parties in respect of this document save as would arise under English law.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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