Thorntons is latest high street name to issue profit warning

Wednesday, 21 December 2011 11:12

Chocolatier Thorntons has become the latest high street name to issue a profit warning following a lengthy period of tough trading.

The retailer recently reported a loss of £253,000 for the year to 25 June 2011, which was compared to a profit of £4.4 million the previous year.

It has now said it only expects to break even in the 53 weeks to June 30th 2012 as shoppers cut back on spending on luxury items.

"Following continued weakness in consumer sentiment and high levels of promotional activity in the market place, the board now considers profits for its full year will fall short of current expectations," a statement said.

Thorntons also pointed out that having to pay leases on closed stores is proving costly and eating into profits.

Another trading update will be issued on January 12th 2012, but the brand has already said it will be closing 180 further shops over the next three years.

Thorntons is not the only store to be struggling - HMV recently said it may have to sell its live music division to fight against the further drop in sales it has witnessed recently.

As a whole, the picture presented by the high street is a mixed one, according to the CBI. Its newest Distributive Trades Survey found that 41 per cent of retailers saw a rise in sales during the first two weeks of December, while 32 per cent experienced a fall.

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