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| French Connection and Thorntons down on trading reports | French Connection and Thorntons down on trading reports |
| (about 3 hours later) | |
| Shares in fashion chain French Connection have fallen 7.6% and chocolatier Thorntons 7% after both reported Christmas sales figures. | |
| French Connection blamed its weak results on a decision to postpone the start of its winter sale by a week. | French Connection blamed its weak results on a decision to postpone the start of its winter sale by a week. |
| Thorntons reported a healthy rebound in overall sales, but the long-term decline at its own stores continued. | Thorntons reported a healthy rebound in overall sales, but the long-term decline at its own stores continued. |
| Meanwhile Dixons fell on fears the electrical retailer may cut its profit outlook on Thursday. | |
| Its shares had been down as much as 5% in early trading, before recovering its losses to close down just 0.3%. | |
| The Curry's and PC World owner is due to unveil sales data from the Christmas period, when rival Comet collapsed. | The Curry's and PC World owner is due to unveil sales data from the Christmas period, when rival Comet collapsed. |
| Comet, which has now ceased to exist, slashed prices in order to clear its remaining stock in the run-up to Christmas, after it went into administration. This may have diverted trade from Dixons. | Comet, which has now ceased to exist, slashed prices in order to clear its remaining stock in the run-up to Christmas, after it went into administration. This may have diverted trade from Dixons. |
| Dixons' share price fell 2.8% on Tuesday, when rumours of poor Christmas trading results first emerged. | |
| 'Continued demise' | 'Continued demise' |
| At French Connection, like-for-like sales in the 24 weeks to 12 January - which exclude the effect of newly opened stores - were reported to have fallen by 2.9% from a year earlier, of which 1.9 percentage points were due to the late start of its sale, the firm claimed. | At French Connection, like-for-like sales in the 24 weeks to 12 January - which exclude the effect of newly opened stores - were reported to have fallen by 2.9% from a year earlier, of which 1.9 percentage points were due to the late start of its sale, the firm claimed. |
| The fashion retailer said it expected to report a loss before tax and exceptional items of £7.5m-£8m for its financial year, which finishes at the end of this month. | The fashion retailer said it expected to report a loss before tax and exceptional items of £7.5m-£8m for its financial year, which finishes at the end of this month. |
| Thorntons meanwhile reported a 5.4% overall increase in sales in the 14 weeks to 12 January versus a year earlier. | Thorntons meanwhile reported a 5.4% overall increase in sales in the 14 weeks to 12 January versus a year earlier. |
| The figures confirmed a significant reversal of fortune for the company since 2011, when declining sales prompted it to announce a series of store closures as part of a strategy to re-orient sales towards the wholesale market. | The figures confirmed a significant reversal of fortune for the company since 2011, when declining sales prompted it to announce a series of store closures as part of a strategy to re-orient sales towards the wholesale market. |
| The drop in Thorntons' share price following the release of its trading results follows a more than quadrupling of its share price since the beginning of last year on rising hopes of a turnaround. | The drop in Thorntons' share price following the release of its trading results follows a more than quadrupling of its share price since the beginning of last year on rising hopes of a turnaround. |
| In line with its strategy, all of the reported growth in the last three months came from the sale of its products by supermarkets and other retailers. | In line with its strategy, all of the reported growth in the last three months came from the sale of its products by supermarkets and other retailers. |
| Meanwhile, performance at stores carrying the Thorntons name continued to be poor, with sales at its own-name stores down 9%. | Meanwhile, performance at stores carrying the Thorntons name continued to be poor, with sales at its own-name stores down 9%. |
| In large part this was due to the closure of 27 of its stores over the last 12 months. Excluding this effect, sales fell 1.3%, down from the 1.7% decline recorded in the previous quarter. | In large part this was due to the closure of 27 of its stores over the last 12 months. Excluding this effect, sales fell 1.3%, down from the 1.7% decline recorded in the previous quarter. |
| Sales at franchised stores were down 27%, mainly because its major franchisee went into administration last year. | Sales at franchised stores were down 27%, mainly because its major franchisee went into administration last year. |
| "Overall, these results confirm Thorntons' continued demise as a leading UK retailer with a national store footprint," said George Scott, retail analyst at Conlumino. | "Overall, these results confirm Thorntons' continued demise as a leading UK retailer with a national store footprint," said George Scott, retail analyst at Conlumino. |
| "The brand has become increasingly less relevant with the UK retail audience; its new vision to focus on selling to the mass market through grocery multiples has undermined its exclusive credentials and ability to extract a premium on its product." | "The brand has become increasingly less relevant with the UK retail audience; its new vision to focus on selling to the mass market through grocery multiples has undermined its exclusive credentials and ability to extract a premium on its product." |