Store rate

Card Factory posts revenue growth thanks to store recovery and second-hand boom

tuesday 03 may 2022 07h16

Card Factory reported revenue growth of 28% this morning to £364.4m as stores resumed a steady recovery following the easing of lockdown restrictions, alongside an online performance well above pre-levels. -pandemics.

Store sales increased 33% for the full year, reflecting a 20% increase in business days and a recovery in market share. Same-store sales for the Christmas season have also recovered to near pre-pandemic levels.

Card Factory’s revenue for online sales fell 1.5% as people continued to flock to stores.

Nonetheless, Card Factory Online revenue increased 135% from full year 2020 results, reflecting the expansion of the online product line and improved customer experience, as well as the acceleration of changing consumers’ online shopping behavior.

Pre-tax profit reached £11.1m, beating management’s expectations despite significant business disruption and inflationary cost pressures.

Discussing the results, Managing Director Darcy Willson-Rymer, said: “As we reopened our stores, we saw our online performance decline slightly year over year; however, we remain very encouraged that our online Card Factory sales were significantly above pre-pandemic levels.

“This year, we will make further progress in developing our customer proposition, through a broader product range and improved online experience, as part of our transition to a leading omnichannel retailer.”

Looking ahead, the greeting card, gift, packaging and bag retailer said it has taken preventative measures to help ease inflationary pressures it sees across the business. and that it will continue to monitor and respond to developing macro-environmental pressures.

New year trading was in line with expectations and is contributing to the continued recovery in market share. Card Factory sees some shift from the mix of spring seasons (Valentine’s Day and Mother’s Day) to everyday ranges, which typically account for 70% of sales.

Card range developments resulting in increased sales in key ranges such as wedding.

The focus is on creating opportunities across the entire store base while building the broader capacity that will allow it to execute on strategic initiatives and drive growth at pace.

Part of this will involve moving from an in-store card retailer to a market-leading omnichannel card and gift retailer.

As announced on April 21, Card Factory has agreed terms on a refinancing with its current banking syndicate, extending credit facilities until September 2025. Card Factory has agreed revised terms on reduced facilities of £150m thanks to its good progress in the use of its positive treasury. flow to reduce overall debt.