I was going to write about Burberry (BRBY) shares today and whether, after selling out at a nice profit a while back, it was time to go back in again (or not). I will leave that one for tomorrow (or the weekend), as I have to say something about events at Hotel Chocolat (HOTC) announced this morning.
Direct-to-consumer chocolate group Hotel Chocolat (HOTC) has announced results for the 53 weeks ended 2nd July 2023 and an update for the 13 weeks ended 2nd October 2023, respectively stating “broadly in line with market consensus” and “highlighting the significant progress made against its strategic priorities”. What of a share price in response currently up to 142.5p?
Regular readers will be able to guess what I am going to say about Hotel Chocolat (HOTC). A few months ago my view remained very cautious and today’s trading update remains…very, very mixed. And you can all guess that there is a reason why the shares are down about 13% today as I write (and about 30% year-to-date and around 60% over the last year)...
It is another interesting day in the world’s financial markets, especially as just a few corporate names are coming up with their largest formal reports or updates or reasons to panic. We will get onto that excitement a bit later, but I was pleased to see today’s pre-close update from DS Smith (SMDS), whose shares I am a fan of as last discussed HERE.
It has been a busy morning, and whilst I could easily talk about the exciting world of clay bricks at Ibstock (IBST) or the (smart in my opinion) decision by Breedon Group (BREE) to exit AIM and go to the Main Market, I am going to talk about the world of chocolate and Hotel Chocolat (HOTC).
A couple of weeks ago I concluded that “Chocolate is a sweet treat but you still cannot say the same for Hotel Chocolat (HOTC) shares” HERE. Despite a big share price fall in 2022, the then c. two quid share price, after an early January hope romp, seemed bonkers to me. It is just over 220p now as, apparently, it had a great Christmas trading session.
Firstly, I would like to wish everyone a Happy New Year. 2023 is going to be an interesting one, but it is not impossible out there and even the average boring institutional investor should do better this year than they did during the last twelve months or so. In short, as always, I enter a new year with the glass being half full and not half empty – as any thoughtful active investor should do. The key is to keep on learning. And all this means that, whilst some stocks are buys today, many others are at best an avoid…which brings me onto Hotel Chocolat Group (HOTC).
Most of us like a bit of chocolate, and my personal top tip is the Taste The Difference J Sainsbury (SBRY) Ugandan 90% dark chocolate. Excellent taste, ESG friendly and does not cost you a fortune. But I have other financial and chocolate issues to discuss today as Hotel Chocolat Group (HOTC), a “premium British chocolate maker”, has announced its preliminary results for the 52 weeks ended 26th June 2022.
Describing itself as “a premium British chocolate maker with a strong and distinctive D2C brand”, Hotel Chocolat Group (HOTC) has announced that, whilst it “continues to explore the future development of wholesale opportunities in the US market… the group has decided to cease US direct to consumer sales via its website and exit the in-country warehousing and fulfilment support arrangements”. Just how “strong and distinctive” is the brand then?
I am trying to remember the last time I went to a Hotel Chocolat (HOTC) shop. If my memory is correct, it was in the Boxing Day 2019 sale. I cannot remember if I regarded its 50% off prices as cheap or not, but suffice to say it would have felt a bit cheaper than buying before Christmas. I tell you what else has fallen by (nearly) 50% this morning: Hotel Chocolat’s share price! So, what’s been going on at the “Chocolate Gifts & Luxury Presents” company whose “three guiding principles have taken us to over 150 chocolate shops, cafe's, restaurants and even a cocoa estate hotel”?
