Card Factory profits set to reach top of targets after 'strong' Christmas

17 January 2024 , 09:01

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Card Factory says its profits have hit target after buoyant festive sales (Image: 2024 PA Media, All Rights Reserved)

Card Factory has announced that its yearly profits are set to hit the top of previous targets after a "strong" Christmas period.

The high street chain saw an increase in sales across its shops due to demand for gifts. Darcy Willson-Rymer, the company's CEO, said they had made progress with their growth strategy which led to the "strong performance" in recent months.

He said: "Our value and quality proposition continues to resonate with customers at a time when value for money is as important as ever. Even during challenging times, consumers want to celebrate key life moments and this was reflected in the positive performance that we saw in the Christmas trading period and throughout the year to date."

The firm told shareholders that total sales grew by 10.2% to £476.9 million for the 11 months to December 31, compared with the same period last year. Store revenues grew by 8.2% on a like-for-like basis, with the firm highlighting continued demand for gifts and cards. However, it reported that online like-for-like sales dropped by 12.8% for the 11-month period. Despite this, the retailer now "expects to deliver full-year adjusted profit before tax (excluding one-off items) at the top of the range of market expectations", it said.

Mr Willson-Rymer praised his team, saying: "Colleagues across all areas of our business have worked incredibly hard to deliver an improved experience for our customers this year. As we look ahead, we remain focused on delivering against our growth strategy by helping our customers to affordably celebrate all life's moments."

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Analysts at Peel Hunt noted a "decent Christmas in challenging sector" in light of weak high street footfall. But the retailer's shares dipped by 6.6% to 100.6p during Tuesday morning's trading.

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Shoppers enter the Card Factory in Newcastle-under-Lyme, Staffordshire, during the Boxing Day sales. Boxing Day spending is expected to fall by more than a quarter compared with a year ago, after extensive new Covid-19 restrictions forced non-essential retailers to close. (PA Archive/PA Images)

Lawrence Matheson