Momentum builds at Card Factory with better than expected performance
Wakefield-headquartered greetings cards and gifts retailer, Card Factory, has reported a robust set of figures in its preliminary results for the year-ended 31 January 2023.
Revenues were up 27.1% to £463.4m (FY 2022: £364.4m) with pre-tax profits climbing from £11.1m to £52.4m. EBITDA rose from £85.6m to £112m over the same period.
Darcy Willson-Rymer, chief executive officer, said: “I have been incredibly pleased with our performance this year which has been ahead of expectations.
“These strong results reflect positive momentum across the business, including notable progress on our strategic growth initiatives, buoyed by the marked shift of customer spend back towards the high street.
“Revenue growth has been underpinned by a strong performance of store-based sales and Everyday card ranges, alongside strong trading through the Christmas season, with new ranges and our compelling value for money offer clearly resonating with customers, driving both store transactions and average basket values.
“Proactive measures that we put in place to manage the inflationary pressures faced in the year, coupled with our strengthening financial position, have underpinned positive progress on our strategic priorities.”
Card Factory says its store revenue grew 7.6% on a like-for-like basis, which the business says reflected a return of customers to the high street.
Meanwhile, online sales at cardfactory.co.uk fell 18.8% year-on-year, due to a combination of customers coming back to the high street and the impact of Royal Mail strikes during the Christmas trading period.
But the business notes these online sales still remained up significantly in comparison to pre-pandemic periods.
Card Factory adds its successful refinancing in April 2022 provides a platform for strategic growth, with a more flexible debt portfolio enabling reduction in gross debt.
It says it will continue to focus on expanding in underserved markets, with the opening of three small format trial stores in central London, as well as continued expansion in the Republic of Ireland.
