Shoppers 'go wild' for peanut pralines as Hotel Chocolat opens NY store

Premium chocolatier Hotel Chocolat has opened its first store in New York as it presses ahead with its expansion plans.

The company said shoppers at the store, which opened on Monday at 441 Lexington Avenue, "went wild" for its peanut pralines.

Chief executive Angus Thirlwell said: "As we evolve into international markets, our core 'More Cocoa, Less Sweet' mantra gains traction across the globe.

"This is a hugely exciting time to be at the helm of Hotel Chocolat, as the brand continues to grow and prove popular with locals in overseas markets, making more people happy through the power of chocolate."

Liberum, which rates the stock at 'buy', said that Hotel Chocolat's entry into the US and Japan, as well as the Scandinavia development agreement opens up a "huge opportunity" for the company.

"The combined chocolate markets of these territories are circa 4.6x the size of the UK," it noted.

"Growth in these regions average circa 3.5% compound annual growth rate (2017-22E) driven by demand for higher quality, healthier and more innovative product.

"The UK is also set for continued growth at circa 4% per annum," the brokerage said.

It pointed out that the shares have fallen 28% over the past six month, underperforming the FTSE 350 General Retailers.

"This offers a relatively more interesting entry opportunity into one of the most exciting structural branded growth stories," it said.

At 1255 GMT, the shares were down 1.3% to 276.26p.