Time to buy? Shares are up as Hotel Chocolat says it’s ‘on the front foot again’
Hotel Chocolat, the luxury chocolate brand beloved by last-minute present-buyers, said today that the “hard, foundational work” to reset the business over the past year is beginning to pay off.
The firm saw an 8 per cent revenue decline in the UK but store sales crept up 8 per cent.
As of 11:45 am today, shares are up 7.69 per cent at 140p per share.
Impairment costs including one in St Lucia, where the firm’s Rabot Estate tourism business has not yet recovered from the ravages of the pandemic, dragged the overall number — an annual loss of £0.8m — down.
The firm also released its first-quarter trading results alongside the full-year, stating that UK store revenues were up 14 per cent and four of its planned 12 stores have now been opened.
The firm also reduced its ‘finished inventory’ — in effect, wastage — from 13 per cent to 1 per cent.
Angus Thirlwell, co-founder and chief executive officer, said: “Hotel Chocolat is on the front foot again. The hard, foundational work we put in last year is now starting to deliver the results for us.
“Our new store format is trading well above our expectations, with 12 new locations planned to open in the next year. Four of them are open already and they are located across the UK from Glasgow to Bournemouth.”
US digital sales, built on the back of a new US-focused digital store, were ahead of expectations.