Card Factory has good Christmas on the high street

Card Factory had a “good Christmas” on the high street although its online sales continue to struggle.
The cards and gifts retailer increased sales by 4.7% through November and December, although this growth was slightly slower than its 11-month performance of 6.2%.
However online sales – which the company has long struggled with in a highly-competitive space – were down 10%.
The retailer expects to deliver adjusted pre-tax profits for the full year in line with current market expectations, of around £66m.
“We are pleased to have delivered another successful Christmas trading period,” said Card Factory chief executive Darcy Willson-Rymer.
“Continued revenue growth, combined with the benefits of our productivity and efficiency programme, have enabled us to navigate a challenging retail environment and deliver a robust performance in the second half.
“As a result, we expect to deliver full year profits in line with expectations and remain well positioned to manage inflationary pressures in the near term, as we continue to deliver on our strategic growth ambitions.”
The changes to the National Living Wage and employer National Insurance contributions will cost Card Factory around £14m next year.
However it still expects “to deliver a mid-to-high single digit percentage increase in adjusted profit before tax” in its next financial year, through its productivity and efficiency programme, as well as range development and pricing.