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Jun 28, 2010
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Theo Fennell eyes lower-priced range, losses narrow

By
Reuters
Published
Jun 28, 2010

Theo Fennell
www.theofennell.com
LONDON, June 28 (Reuters) - Theo Fennell (TFL.L), the British jeweller favoured by celebrities like Elton John and Naomi Campbell, plans to launch a range of lower-price products, it said on Monday, as it reported a reduced annual loss.

Chief Executive Barbara Snoad told Reuters the new range of silver jewellery, to be launched in October, would be priced at between 70 pounds and 2,000 pounds ($105-$2,994) and drive the next stage of the company's turnaround plan.

The firm, which typically sells jewellery priced at 1,000 pounds or more, made a loss before tax and one off items of about 250,000 pounds in the year ended March 31, improving on the 2 million pound loss reported the year before.

Having parted company with the business in February 2008, Theo Fennell's eponymous founder returned in June 2009 in a bid to reverse a steep decline in its fortunes.

In September, he launched the first new collection for two years, and like-for-like sales leapt 23 percent in the second half of the financial year.

Underlying sales have continued at that pace in the first 10 weeks of the new financial year, helped by strong demand for pendants adorned with devils and wings, as well as top-end rings with secret compartments.

Celebrity endorsements have also helped. Flamboyant popstar Lady Gaga was spotted wearing Theo Fennell jewellery last week at Elton John's white tie and tiara ball.

Seymour Pierce analyst Freddie George welcomed the new lower-priced range, saying it could be "transformational for the business in the medium term."

He is forecasting a pretax profit of 500,000 pounds in 2010-11.

Dubbed the "King of Bling" by some newspapers, Fennell's flamboyant designs -- from skull rings and diamond-studded crucifixes to solid silver Marmite lids and 18 carat gold nappy pins -- became synonymous with the conspicuous consumption of the late 1990s.

Snoad said the company would launch an improved website in October and continue its international wholesale expansion, with openings in Ukraine in October, and Qatar and China in November. ($1=.6680 Pound) (Reporting by Mark Potter; Editing by Hans Peters)

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