Sales down 11% on 2010 figures as group wrestles with tough market.
Theo Fennell blamed a “depressed UK consumer market” as it was hit hard this Christmas as festive sales tumbled 11% on the year before.
The jewellery group described the results in the five weeks to the end of December as “disappointing”. The group claimed that its stores had been trading well right through until November but then experienced an unexpected year-end dip.
Theo Fennell’s London stores, including its flagship on the city’s Fulham Road, were an exception to the rule, with these outlets trading above 2010’s figures
As a result of this weak trading and the investment the group has poured into launching its silver line Alias, Theo Fennell is now warning investors that it is planning to make a loss in the financial year to March 31..
After a dull Christmas, the jewellery brand is now charging ahead with plans to recoup its fortunes in 2012 by bolstering its wholesale operations, expanding internationally and further pushing its Alias line of silver jewellery that was launched in 2010. The company is also conducting a restructuring of its cost base.
A statement from the brand concluded: “The focus for the coming year will be on increasing sales both in the UK and internationally as well as developing Alias and our website. We believe that the brand has hardly been exploited thus far and has great potential to expand into new international markets given our unique design-led product and the number of significant markets the brand has yet to penetrate. Additionally we will continue to look to develop our wholesale network over the next 12 months."