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Hotel Chocolat to repay £3.1m in furlough money after seeing an online sales boom during Easter and Mother's Day

This Is Money logo This Is Money 10/05/2021 14:17:44 Camilla Canocchi for Thisismoney.co.uk
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Rising online sales of Easter eggs and other chocolate treats for Mothers Day helped lift sales at Hotel Chocolat in March and April in what was the 'second largest seasonal peak' for the business.

Sales have been stronger than before the pandemic, rising 19 per cent during the eight weeks to April 25 compared to the same period in 2019, the company said.

The upmarket chocolatier also confirmed it will repay around £3.1million it received from the Government in furlough support as it expects trading for the full year to be 'significantly' ahead of expectations. 

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Sales for the eight weeks to April 25 jumped by 60 per cent compared to last year, despite stores being closed for six weeks during the period.  

In comparison, stores in the same period last year were closed for a a shorter five weeks and were open on Mother's Day, but Hotel Chocolat said the latest sales boost was 'largely' driven by online sales and subscriptions.

And sales were not only ahead of last year, but also 19 per cent higher than in the same period in 2019, before the pandemic struck. 

Investors took well the trading update, with shares in the company rising 8 per cent to 378.20p by midday on Monday. They have risen by 157 per cent since its stock market debut in 2016.


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Hotel Chocolat chief executive, Angus Thirlwell, said it witnessed significantly higher gift sales at Easter this year as many could not travel to see loved ones.

'Families were incredibly generous in sending chocolate to other people in different parts of the country,' he told the PA news agency.     

'I think people saw it as a way to stay connected and treat one another after a really tough year,' he added.  

Hotel Chocolat said sales have been encouraging since reopening its stores on 12 April in England. 

Thirlwell said regional high streets have been 'particularly strong' while it expects a longer recovery as its travel sites.

Given the recent strong sales, the company said it now expects trading for the full year ending on 27 June to be 'significantly ahead of expectations'. 

Over the past year, Hotel Chocolat attracted over one million new customers, or an increase of 47 per cent, Thirlwell said.  

The business, which also sells its products in the US and Japan, has seen business rise in lockdown, as locked-down Britons indulged in mood-lifting chocolate treats. 

Russ Mould, investment director at AJ Bell, said it is also set to benefit from the closure of all stores of rival Thorntons, which is now only selling online and through supermarkets and other retailers.  

'The company has done a good job of adjusting to the realities of the pandemic by shifting more of its sales through its website and third parties when its stores were unable to operate,' he added.     

lundi 10 mai 2021 17:17:44 Categories: This Is Money

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