Hornby Sales and Profits Lag Forecasts Due to Shipping Delays

September 11, 2024 02:00 PM BST | By Team Kalkine Media
 Hornby Sales and Profits Lag Forecasts Due to Shipping Delays
Image source: shutterstock

Model train set manufacturer Hornby (LSE:HRN) saw its shares decline on Wednesday following the release of its latest financial update, which indicated strong sales and profit growth but also highlighted performance that fell short of internal projections due to shipping delays.

In a report covering the period from April 1 to the end of August, Hornby revealed that both sales and gross profits had increased by 10% compared to the previous year. However, the company noted that these figures were slightly below its internal forecasts due to delays in shipping. As with many businesses in the industry, Hornby's full-year results will be influenced by sales during the critical Christmas trading season.

Despite these challenges, Hornby reported a robust order book with several new products yet to be launched. Direct-to-consumer invoiced sales rose by 11% compared to the previous year and by 56% when compared to the same period in 2022. The company has made significant progress on strategic initiatives outlined in its most recent Annual Report. Although inventory levels remain high due to planned stock build-up ahead of the peak trading period, total stock holding is 7% lower than at the same time last year.

Hornby anticipates that inventory levels will decrease further during the key Christmas period. The company's outlook for the full year remains unchanged despite the delays and high inventory levels.

As of 09:40 BST, Hornby’s shares were down by 4.3% at 20.10p.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next