Card Factory sales exceed expectations after store reopenings

The greetings card and gifting specialist said like-for-like sales since reopening were down 22% year on year. That compared with a forecast drop of 50% during the first month of reopening.

Card Factory said that while the number of transactions made through its shops had fallen compared with 2019 levels, average spend had jumped 25%. 

The group’s online sales have also soared amid the coronavirus pandemic. Like for likes through its Cardfactory.co.uk and Gettingpersonal.co.uk websites are up a combined 69% in its financial year to date. 

During the period its stores were closed, from March 23 until June 14, Card Factory’s ecommerce like for likes more than doubled, rocketing 121%.  

Across the first half of its financial year, covering the six months to July 31, Card Factory said it expects revenue to come in at around £100m. That would represent a 49% slump on last year’s £196m. 

Card Factory said it was “pleased” with that performance, but cautioned it was “far too soon to determine whether initial trading reflects the release of pent-up demand”. It said it could therefore not predict the levels at which footfall and sales would settle. 

The retailer’s trading update comes ahead of a Capital Markets Day this afternoon, at which it will unveil full details of its new strategy and financial targets.

By 2025, Card Factory wants to achieve annual sales of £635m and an underlying pre-tax profit of £105m. 

The retailer also plans to increase the number of customer touchpoints it has within the UK and overseas to 5,600 – including 1,100 company-operated stores – and grow its share of the UK greetings card market to 45%.   

Card Factory executive chair Paul Moody will lead the Capital Markets Day, following the sudden departure of former boss Karen Hubbard at the end of June.