Faster growth at Card Factory as sales increase 3.1%

Retailer Card Factory is combating a slight decline in profitability, investing in its store portfolio as like-for-like sales rise 3.1%.

Despite headwinds from foreign exchange movements and national living wage, the group said it remained highly cash generative, and the like-for-like sales increase in the six months to 31 July was a major improvement on the 0.2% growth in the same period last year.

In the first half the Wakefield-based retailer opened 30 net new UK stores, slightly down from the 34 opened last year, bringing the total UK estate to 895 stores at the end of July.

A trial in the Republic of Ireland has been launched and the first store there opened, with a number of others in the pipeline for later in the year.

Karen Hubbard, Card Factory’s chief executive officer, said: “It is pleasing to report that the strong sales performance highlighted in our Q1 announcement has continued into the second quarter, delivering a very good first half both in terms of overall and like-for-like store sales.

“Our store expansion programme remains on track and we are pleased with the performance of this year’s openings, including strong sales from the increased proportion of openings in retail parks.

“The Board’s expectations for the full financial year remain unchanged and I look forward to providing a further update with our half year results next month.”