Card Factory has slashed expectations for the year to come and its financial year ending January 2021 following a “softer than anticipated Christmas trading period”.
The card specialist’s group revenue like for likes dipped 0.6% during the 11 months to December 31. However, total revenue for the period increased 3.6% despite the “challenging” Christmas period.
Card Factory now expects full-year underlying adjusted EBITDA to be in the range of £81m to £83m, reflecting the “softer than anticipated Christmas trading period”.
The card retailer said “adverse external factors” such as declining high street footfall and depressed sterling valuation and wage increases have affected its performance for a number of years.
Card Factory warned underlying EBITDA for the year ending January 2021 will be in the range of £5m to £10m.
Cardfactory.co.uk grew 14.8% down from 59.1% during the same period. A new platform will be launched this year to enable click-and-collect and in-store ordering.
During the period, 47 new stores were opened, bringing the store estate total to 1,019, and several partnerships were rolled out including an agreement with Aldi, Matalan and The Reject Shop in Australia.
Card Factory chief executive Karen Hubbard said: “The Christmas trading period continued to be challenging given the general election and weak consumer confidence, the impact of which can be seen in the footfall decline experienced in the period.
“Our investment in our customer experience, operational efficiency and data to improve our ranges has helped us to mitigate some of the effects of the tougher retail environment and higher costs experienced in the year.
“We plan to invest further in the business, enhancing our ability to operate more efficiently, service new sales channels and increase our competitive advantage, enabling a return to profit growth after the next financial year.”
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