Amidst the current retail doom and gloom, Card Factory has revealed that trading at its stores is ahead of expectations with “good momentum” across the business.
Sales in the 11 months to 31 December rose from £337.3m in the prior year to £432.6m as trade shifted back towards the high street in the wake of the pandemic.
The gift and card retailer’s store revenue grew by 7.1% on a like-for-like basis, with “strong” Christmas trading driven by improvements in both transactions and average basket values.
Due to consumers returning to high streets and postal holding strikes, Card Factory’s online sales fell by 27.6% year-on-year. However, the company noted that sales on its website remained 85.2% up on pre-pandemic levels three years ago.
As a result of the positive trading momentum, Card Factory now expects its EBITDA for the 12 months to 31 January 2023 to be at least £106m.
The company noted that it remained mindful of the “challenging economic backdrop”, although it expects its value-for-money proposition to drive demand.
Darcy Willson-Rymer, Chief Executive of Card Factory, commented: “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.”
