Hornby reports impressive festive sales as first-time customers jump
By Benjamin Chiou
Date: Wednesday 08 Jan 2025
(Sharecast News) - Hornby's share price continued to jump on Wednesday after the model train and collectibles group reported impressive results for its third quarter, bolstered by a strong festive selling season.
Group sales for the three months to 31 December were up 7% on last year when excluding the LCD Enterprises business that was sold in November.
For December alone, revenues were 23% higher year-on-year, while gross profits were up 38%, which the company put down to a "strong programme of activity around Black Friday and Christmas".
For Black Friday in particular, Hornby said that nearly 50% of all transactions came from first-time customers, up from 42% in 2023.
"Acquiring new customers in these naturally buoyant trading periods is critical for feeding our CRM strategy that drives further purchases over time," the company said.
Group margins for the quarter rose to 48% from 44% a year earlier, which was due to an increase in direct-to-consumer activities (up 10% year-on-year) and additional full-price sales.
The company didn't disclose any specific guidance for the full year ending 31 March but said it remains on track for "year-on-year growth".
"In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter. Concurrently we are continuing to drive down the inventory levels that had built up in recent years and are delivering our change plans in a steady and sustainable way," said chief executive Olly Raeburn.
The stock was up 9% at 27.8p, having now surged 46% over the past two weeks alone.
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