Theo Fennell says festive sales disappoint, warns of loss
LONDON, January 15, 2012 – AIM-listed UK luxury jeweller Theo Fennell PLC has reported disappointing sales during the festive season and warned of a trading loss in the year to end-March 2012.
Sales in the five weeks for the month of December 2011 were 11 percent below 2010.
“The Group experienced mixed Christmas trading due to a depressed UK consumer market,” a trading statement said.
“Sales at the Theo Fennell flagship and City stores were up versus the prior year. However, sales from Theo Fennell’s other outlets were below the prior year. This was particularly disappointing given they had traded well during the first 8 months of our financial year to the end of November.”
As a result of weak Christmas trading and the significant investment the company had made in the year, particularly the Alias line of silver jewellery and development of its website, Theo Fennell said it expected to make a loss for the year ended 31 March 2012.
Theo Fennell’s focus for the coming year will be on increasing sales both in the UK and internationally as well as developing Alias and its website.
“Given the continued uncertain economic environment expected in 2012 the company is in the process of an in depth restructuring of its cost base to ensure that the business will achieve an improved performance,” Theo Fennell said.