Hotel Chocolat - HOTC

UK based Luxury chocolate store - recent potential plans to expand to America and Japan.

Google Finance

I’m absolutely with this. UK’s only bean-to-bar producer.

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Hotel Chocolat manufactures premium chocolate and cocoa-related products, and sells these direct to customers. The Group sells its products online and through a network of 96 stores in the UK and abroad, with 96% of FY17 sales occurring in the UK. The Directors believe that Hotel Chocolat is the UK’s favourite premium chocolate brand, providing a differentiated, cocoa-rich taste at an accessible price.

The business was founded in 1993 by Angus Thirlwell and Peter Harris and has traded under the Hotel Chocolat brand since 2003. Hotel Chocolat has a strong and distinct brand that is at the core of its offering and is built on values of originality, authenticity and ethics.

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Thanks for sharing this overview :pray: I’ve moved your post over to this topic to keep all of the votes here, please do add yours.

After watching the tv series about Hotel Chocolat, I felt inspired to join Freetrade to start investing in the company.
Angus Thirlwell’s Hotel Chocolat has shown that cashing-in on customer loyalty and adapting each store’s offering to suit customer demand, boosts profits. Opening 15 new stores in such a tricky trading period was no mean feat. And down-playing its original subscription-based customer model and driving sales into stores shows how niche, high-end retailers remain a crucial part of the UK retail sector. As well as proving that you have to adapt your original ideas.

With plans now to launch in the US and Japan later this year, things are certainly looking sweet for Hotel Chocolat. The AIM-listed chocolatier is bucking the downward trend in the UK retail sector and has even managed to fend off the bitter taste that the weakness of sterling left on raw material costs.

The brokerage reckons Hotel Chocolat is in a very small group of UK retail companies which are seeing top line growth and margin expansion.

Although I have invested in a couple of other companies, I really believe this would be a fantastic addition to Freetrade.

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I’d really like to see this added to the stock universe. My wife alone I think spends enough to keep them afloat (literally).

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With the Valentine’s Day holiday fast approaching, I thought it be a good idea to invest in a luxury chocolate stock. I bought in @ £4.75 so let’s hope they have some success!

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Hi @Argy204 welcome welcome welcome :ocean:

The thing you need to watch out for with making a decision like this is -

  • Everyone knows it’s Valentine’s Day coming up and this is factored into pricing months and months in advance
  • They could sell more stock than previous months but if it’s below what analyst expect or management have guided its a bad thing.
  • You’ll not see the result of Valentine’s Day until they release a trading statement or have an earnings call which could be months away.

If you like them for the long term, 1-5 years then go ahead. A brief look at the financials says they’re okay but not amazing and maybe a bit high. Good luck :ok_hand:t2:

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Oh dear! 70% down. Not worth selling, may as well hold onto it and see what happens.

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Wasn’t aware it was listed.
Chocolate good.
Lots of choices.
To expensive for me I always buy in the sales.
Suspect it has a well off middle class customer base.
Question is is it in the discretionary purchase sector? If so sales will fall at least in the short time.
Therefore possible a buy if the market has already marked it down.
Oops didn’t see the above post. So market has made a decision. It is consumer discretionary.

Just checked 62%dowm over 1 year. Could be worth checking news on Hargreaves Lansdowne for instance.

Is this a false bottom? Seems to have levelled off of late.

532p peak 114p bottom this year. Presently 160.
Sacking US and Japan. Looking to continue investment and growth in the UK. Considering the peak price it doesn’t look overpriced.
But they say things won’t get better for a couple of years. They are profitable and have lots spare cash.
I am afraid small companies that have only recently listed are not forgiven quickly.
I would wait till any recession is over and inflation has fallen before i would think about buying.
I have done minimal research to come to that opinion feel free to ignore it.
Opps just noticed last post was August.

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Will they get Hot Chocolate to come in and sing “You Sexy Thing” during their next earnings report?

I believe they have already booked them.

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@freetrade team, could we get the HOTC threads merged?

The correlation certainly stacks up for me @gemma!

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The proof is in the chocolate pudding!

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“Customers tend to purchase more chocolate when consumer confidence declines, which is why Hotel Chocolat is one of my stocks to buy. Odd as it may seem, this inverted relationship can be attributed to the Lipstick Effect, where small-ticket indulgences have some level of protection during economic turmoil. Sometimes, this can even lead to increased sales volumes as customers trade down to buy more ‘affordable’ treats and gifts.”

Very curious to know if investors share the same sentiment? Future isn’t looking overly bright given the amount of money burned from trying to make it in the US.

I probably should have shares in this company, spend a fortune in their shops every Christmas!