Thorntons slides 17% on warning
Thursday 06 May 1999
Roger Paffard, chief executive, surprised the City with the announcement that Thorntons had revised its full-year expectations down to about pounds 10.5m, against analysts' forecasts of about pounds 13.5m. The company blamed poor Mother's Day and Easter egg sales for a 5 per cent slump in like-for-like sales at its stores in the 44 weeks to 1 May.
One analyst said: "It's a substantial surprise. Most forecasts were around pounds 13.5m, so the downgrade is fairly significant."
Mr Paffard brushed off suggestions that the brand was struggling on the high street and said the disappointing sales were due to a conscious corporate decision that has proved to be a mistake.
The decision to cut marketing costs and reduce the number of new products on offer was taken to help simplify the business as it completed a pounds 53m investment in three reorganisation projects, which include a new factory and warehouse distribution centre. "There was so much change going on in the business that we decided it wasn't a time to concentrate on new products. Although we're very disappointed, we see it as a spring season issue and not a structural one," Mr Paffard said.
Now that the company's investment is complete, it will boost marketing of new products, including a millennium range, impulse bars and yoghurt ice-cream, he said.
Analysts said it would take at least eight months for the company to recover as Christmas is the key trading period.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
Rap music mogul accused of running two men over in his truck
World cities ranked in terms of safety, food security and 'liveability'
First full-length look is finally here
"Oink! Oink! Hee hee hee!" First interview with the big-screen star
Biohacking group hopes technology will lead people to think about even more dystopian uses
The party's potential nominations read like a high school race for student body president
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Mia Khalifa: Pornhub star claims Drake sent her 'cringeworthy' naked photos on Instagram
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...