Bumper Mother’s Day and Easter trading underpinned a very encouraging trading update from chocolatier Hotel Chocolat (HOTC:AIM) and helped the shares advance 8.6% to 380p.
The company upgraded its outlook on performance after reporting a jump in revenue for the eight-week period ended 25 April, driven by its digital channels and subscription products.
The company now expected trading for the full year ending 27 June 2021 to be 'significantly' ahead of expectations.
Since the re-opening of physical retail locations in England on 12 April 2021, sales across all the company's channels had been encouraging, the company said.
For six weeks during the period, including for both Mother's Day and Easter, revenue increased 60% compared to the prior year (during which physical retail locations were closed for 5 weeks, however, were open for Mother's Day).
SALES AHEAD OF 2019 LEVELS
Revenue for the eight-week period was also 19% higher than the comparative eight-week period in 2019, being the most recent comparable pre-Covid trading period during which all physical retail locations in England were open.
AJ Bell investment director Russ Mould commented: ‘More and more people seem to be reaching for Hotel Chocolat products when they want a little bit of affordable luxury and occasions like Mother’s Day or Easter have been celebrated with gusto by people looking to break up the monotony of lockdown.’
He added that the company had done a good job in reacting to the pandemic and selling products through third parties and its own website when stores were unable to open.
‘The recent exit of rival Thorntons from the high street may also prove helpful to Hotel Chocolat as the easing of restrictions continues, allowing it gobble up market share,’ he added.
‘Hotel Chocolat has done an impressive job of building out its brand in recent years, something reflected in the 157% premium it trades relative to the price at which it made its market debut back in 2016.’
