Encouraging start to year for Card Factory

Retailer Card Factory has made a positive start to the year, with a rise in like-for-like sales against what it called a “challenging consumer environment”.

In a trading update for the quarter ended 30 April, the group reported total group sales growth of 6.4% while like-for-like sales were up 2.3%.

Card Factory continued its store roll out programme with 14 net new stores opened, compared to 10 in the prior year period.

The company said: “Card Factory’s total and positive LFL sales performance represents an encouraging start to the year, although in part reflects the weakness in the comparator period. In the context of the continued challenging consumer environment, this performance illustrates the strength of our quality and value offer and the ongoing work to re-design and refresh products. Seasonal card and everyday non-card ranges performed well in the quarter.

“The opening of 14 net new UK stores (Q1 FY19: 10) in the quarter brings the estate to 979 stores (including seven stores in the ROI). We remain on track to open approximately 50 net new stores in the current financial year.  This includes a number of stores in the Republic of Ireland and on retail parks, in both of which our stores continue to perform well.”

Karen Hubbard, Card Factory’s CEO, said: “We have had a positive start to the year with like-for-like sales growth despite challenging consumer sentiment and negative footfall on the High Street. We have seen a good customer reaction to our seasonal card ranges over the quarter, with yet again record card sales in volumes and value for both Valentine’s Day and Mother’s Day. We continue to improve the range and quality of card and non-card options.  Our store opening programme remains on track and we are pleased with the performance of recent openings.

“Overall, Card Factory remains in a strong position, continuing to grow market share, with lessening cost headwinds and a platform for medium term growth.”