Hotel Chocolat ‘cautious’ ahead of Easter amid falling sales
8 March 2023, 11:24
The premium chocolate business revealed sales were lower for the past half-year while profitability also dipped.
The boss of Hotel Chocolat said the retailer is “cautious” about customer sentiment ahead of Easter and Mother’s Day due to the soaring cost of living.
The premium chocolate business revealed sales were lower for the past half-year while profitability also dipped, blaming lower international and wholesale revenues.
Angus Thirlwell, co-founder and chief executive officer, hailed recent trading across its stores but highlighted continued pressure on consumers.
“The Group continues to trade in line with market expectations for sales though as previously guided, we remain cautious about consumer sentiment over the upcoming seasonal events of Mother’s Day, Easter, Eid and Father’s Day,” he said.
“This strong sales performance from Hotel Chocolat stores, underpinned by our scaled database, is a result of hefty investments we continue to make into our brand.”
It came as the company revealed that total revenues declined to £129.8 million for the last six months of 2022, dropping from £142.9 million a year earlier.
Hotel Chocolat said this was partly caused by 69% plunge in international sales.
The firm also highlighted that wholesale revenues were “lower than planned” at the start of the year due to “cautious” inventory management by online sellers and the impact of the UK heatwave at the start of the half-year.
However, the company saw growth in UK stores sales, with like-for-like growth as 7% as shoppers returned to high streets.
The retailer said that underlying pre-tax profits declined to £10.2 million for the half-year, falling from £25.4 million a year earlier.
Mr Thirlwell added: “Having grown sales by 66% since the start of the last pre-pandemic year, as previously announced, we are taking this year, over full-year 2023, to sharpen up our operating model before we embark on the next stage of growth.
“I am really pleased with the determination I have seen across our teams to get back to running a tight ship again.”
Shares in the business were 2.4% lower in early trading.
