CARD FACTORY PROFITS SOAR AS HIGH STREET SALES BOUNCE BACK

Profit has soared in the full-year results for Card Factory with the high street gift card retailer said to have performed ahead of expectations thanks to a return of customers to the high street.

The listed company reported a profit before tax of £52.4m for the year ended 31 January 2023, up from £11.1m in 2021/22. EBITDA also increased to £112m from £85.6m.

Revenue grew by 27 per cent to £463.4m from £364.4m the previous year.

On a like-for-like basis, revenue rose by 6.7 per cent underpinned by a strong performance of store-based sales and Everyday card ranges, accompanied by strong trading through the Christmas season.

Revenue from the company's store grew by 7.6 per cent on a like-for-like basis, as customers returned to the high street following the pandemic.

Sales from cardfactory.co.uk were down 18.8 per cent year-on-year, due to a combination of customers returning to the high street and the impact of Royal Mail strikes during the Christmas trading period. However, they remained up significantly in comparison to pre-pandemic.

Targeted price increases were said to have accounted for about two-thirds of the like-for-like growth, with both transactions and average basket values increasing compared to last year.

Darcy Willson-Rymer, chief executive at Wakefield-headquartered Card Factory, 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.

"Whilst remaining mindful of the ongoing impact of the cost-of-living crisis on our customers, we are confident that we are well positioned to make good progress in our transition to becoming the market leading omnichannel retailer of cards and gifts."

More information and source here: Card Factory profits soar as high street sales bounce back | Yorkshire Business News (insidermedia.com)