Customers returning to high street boost sales at retailer

Card and gifts retailer, Card Factory, says it is trading ahead of its expectations in an update for the 11 months ended 31 December 2022.

The Wakefield-headquartered business achieved sales for the period of £432.6m (11 months to 31 December 2021: £337.3m) which it explains reflects a shift of customer spend back towards the high street.

Store revenue grew 7.1% on a like-for-like basis, though customers returning to the high street and the impact of Royal Mail strikes saw online sales down 27.6% year-on-year.

Darcy Willson-Rymer, chief executive officer, said: “We’re pleased and encouraged by the continued strong performance of the business. 

“With delivery of our growth strategy progressing well, it is great to see some of the benefits from this work starting to come through in our financial performance.”

As a result of the continued trading momentum, Card Factory now expects its EBITDA for the 12 months to 31 January 2023 (FY23) will be at least £106m. This EBITDA would approximate to a pre tax profit of around £48m.

The company adds that it has continued the initial roll out of its new model store format, with ten of these stores now open. Further conversions of a number of stores are planned for FY24.

In September the retailer launched its Click & Collect trial, which is now live in 85 stores.

In its outlook statement, Card Factory says it can take confidence in the level of ongoing customer demand and notes it has continued to successfully manage inflationary pressures during FY23.