Shares of Hornby PLC (GB:HRN) surged today after the company reported strong numbers for the third quarter ending on December 31, 2024. The group’s sales in Q3 grew by 7% year-over-year, excluding LCD Enterprises Limited, which was disposed of on November 30, 2024. Following the update, Hornby shares gained over 7% as of writing.
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Hornby PLC is a British company that specializes in manufacturing model railways and operates in the UK, Europe, and the U.S.
Hornby Enjoys Robust Holiday Sales
Hornby’s solid performance was driven by robust sales during Black Friday and Christmas. The company experienced significant growth in December, with a 23% increase in revenue and a 38% boost in gross profit compared to last year. The company further stated that nearly 50% of its Black Friday sales came from first-time customers, which grew from 42% in 2023. This indicates a better ability to attract new customers during this key shopping period.
For the financial year to date, group sales increased by 8% compared to last year, with gross profits increasing by 10%. The company also reported an increase in margins from 44% in 2023 to 48%. The rise is attributed to a 10% year-on-year growth in direct-to-consumer activities and a rise in full-price sales.
Looking ahead, Hornby is on track to meet its full-year growth forecast and continues to make progress with its turnaround efforts.
Year-to-date, HRN stock has gained over 10%.
