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Lindt retreats on price rises after Easter sales drop
Lindt cited an 11.8% groupwide price increase as one driver of first-half revenue decline, while Easter sales fell 0.9% and sales volume dropped 7.5%.
Lindt partially reversed its recent price-hike strategy after weaker Easter trading, with the Swiss chocolatier saying its earlier “necessary groupwide” price surge of 11.8% helped weigh on first-half revenue.
The company also pointed to softer Easter demand and reduced tourism from Asia and the Middle East, attributing the slowdown to geopolitical uncertainties. It said it has adjusted prices and boosted marketing in selected regions for the second half of the year.
Lindt reported that overall sales dipped 0.9%, with European sales down 2.1%. By volume, sales fell 7.5%, and pre-tax profit decreased 1.5%.
In travel channels, Lindt said airport chocolate sales declined due to ongoing conflicts in the Middle East and falling passenger traffic. It added that it saw sales improve in North America, Australia, China, and Japan, while noting Europe accounts for more than half of its revenue.