Card Factory FY sales surge as shoppers return to stores

(Sharecast News) - Card Factory reported surge in full-year profits on Wednesday as shoppers returned to bricks and mortar stores. In the year to the end of January, pre-tax profit rose to £52.4m from £11.1m a year earlier, with revenue up 27.1% at £463.4m.

The retailer posted like-for-like revenue growth of 6.7%, "underpinned by a strong performance in the core business activity of store-based sales and Everyday card ranges, accompanied by strong trading through the Christmas season".

Store revenue increased 7.6% on a LFL basis, as customers returned to the high street. Card Factory also pointed to the success of its new ranges and its "strong value for money proposition", alongside the successful implementation of targeted price increases.

Sales on the cardfactory.co.uk website fell 18.8% year-on-year due to the return to in-store shopping and the impact of Royal Mail strikes over Christmas.

Chief executive Darcy Willson-Rymer said: "These strong results reflect positive momentum across the business, including notable progress on our strategic growth initiatives, buoyed by the marked shift of customer spend back towards the high street.

"Whilst remaining mindful of the ongoing impact of the cost of living crisis on our customers, we are confident that we are well positioned to make good progress in our transition to becoming the market leading omnichannel retailer of cards and gifts."