‘Positive start’ to the year continues greetings retail giant’s growth
A “positive” start to the first half of the financial year has seen Card Factory report that trading is “materially ahead” of the board’s expectations.
In the trading update released yesterday, 7 August, the specialist retailer of greeting cards, gifts, and celebration essentials, admitted the “macro backdrop continues to be uncertain” but said the first six months to 31 July has continued the positive start which was highlighted at the preliminary results.
Card Factory stated: “The macro backdrop continues to be uncertain, and there is still much to be delivered over the remainder of the year. Nevertheless, given the strength of the performance in the first half, together with our current outlook for the second half, the board now expects the full year outturn to be materially ahead of its previous expectations.”
In May, Card Factory reported that revenue for the year to 31 January increased by 27.1% to £463.4 million after it benefited from customers returning to its stores post-pandemic. Pre-tax profit was also up significantly, climbing to £52.4 million from £11.1 million a year earlier.
And shares in the company, which has around 10,000 employees and was floated on the London Stock Exchange in 2014, have more than doubled in the past year to 105p, shooting up by 14.9% yesterday morning as the trading update was released.
Just last week the greetings retail giant, which has over 1,000 stores in the UK, announced its international expansion of its first shop in the Middle East.
The outlet in the Bawabat Al Sharq Mall in Abu Dhabi is part of the company’s long-term master franchise agreement with Liwa Trading Enterprises which was announced in May, with three further stores set to open in the capital of the United Arab Emirates and Dubai in August.
The opening follows the group’s expansion into South Africa through the acquisition of SA Greetings in April, and the company continues to seek partnerships in its seven international target markets of the USA, Canada, Middle East, South Africa, India, and New Zealand, as well as Australia where it has an existing agreement with The Reject Shop.
Card Factory’s chief commercial officer Adam Dury will be a keynote speaker at the GCA’s Conference & AGM this year, which takes place on 28 September at the Royal Armouries in Leeds.To book your tickets click here.
Having been connected to the industry for over 25 years, Adam will be sharing his view of the greeting card market along with interesting consumer insights.
He will also talk about Card Factory, changes the retailer is seeing on the High Street, how it works with other publishers, and sharing some background on retailer’s journey from the back of a van to over 1,000 stores.
