Hotel Chocolat's Christmas sales not sweet enough for investors

(ShareCast News) - Hotel Chocolat Group's quarterly revenue rose during the Christmas period due to an increase in footfall for the chocolatier and sales of higher priced items, though investors seemed disappointed about what that implied for like-for-like growth.The AIM-quoted company said it was trading in line with expectations as revenue increased 16.2% for the second quarter ended 25 December 2016, compared to last year, or 14.6% on a constant currency basis.Retail growth was driven by increases in footfall and items per basket, as customers bought more higher-priced items, while the digital business experienced similar gains. The company recently launched a new website, which is optimised for smartphones and tablets, a gift creator service for delivery, and better integration of the tasting club subscription service.Meanwhile, 10 new stores were opened in the second half of the year, bringing the total to 90 UK outlets.Angus Thirlwell, co-founder and chief executive, said: "The growing strength of the Hotel Chocolat brand has enabled us to perform well. Our seasonal ranges included many new innovations and our cafe drinks offer adds a new dimension to our experience. Being a UK manufacturer gave us the flexibility to maintain good stock availability right up to the end of the season."Independent retail analyst Nick Bubb said the top-line sales increase "didn't leave room for much" LFL sales growth, which the company had left unquantified. Shares in Hotel Chocolat Group were down 1.36% to 291p at 0829 GMT.