In a brief statement this morning, Thorntons said it now expects to break even in the year to the end of June, at the level of profits before tax, exceptional costs and onerous lease charges.
"Following continued weakness in consumer sentiment and high levels of promotional activity in the market place, the board now considers profits for its full year will fall short of current expectations," Thorntons said.
Thorntons' shares slumped 26pc to 28p shortly after the opening.
The chocolate chain joins retailers including HMV and La Senza who are struggling to make money as consumers tighten their belts and supermarkets take an increasing share of spending.
A report by the Centre for Economics and Business Research (CEBR) earlier this week predicted overall retail sales volumes would be even worse than last December, when extreme weather played havoc with retailers’ trading and supply chains.
Once the impact of inflation is stripped out, declining consumer spending
power means that retailers can expect to take 3pc, or £970m, less this
Christmas compared with last year.
The CEBR also said this month’s sales figures would be down 1.7pc compared
with November.
