...By Henry George for TDPel Media.
Card Factory, a British greeting card and gift retailer, has reported a 27.1% increase in sales for the full year ending January 31st.
The company’s annual revenue reached £463.4 million with comparable sales growth of 6.7%. Darcy Willson-Rymer, the CEO of Card Factory, attributed the strong results to the positive momentum across the business, including notable progress on strategic growth initiatives.
The CEO added that customer spend has shifted back towards the high street, leading to a marked increase in sales for physical stores.
Physical shops outperform online sales
The company reported that store revenue rose 7.6% on a like-for-like basis, reflecting a return of customers to the high street, successful implementation of targeted price increases, and strong value for money proposition.
However, the company’s online sales slumped by 18.8% due to the impact of Royal Mail strikes during the Christmas trading period and customers’ preference to shop in physical stores.
One-off benefits boost pre-tax profits
The pre-tax profits of Card Factory leapt to £52.4 million from £11.1 million.
However, the company acknowledged that this was due in part to one-off benefits.
In the current financial year, Card Factory has seen encouraging trading slightly ahead of the board’s expectations.
Card Factory aims to become a market-leading omnichannel retailer
Darcy Willson-Rymer expressed his confidence in the company’s ability to make good progress in its transition to becoming the market leading omnichannel retailer of cards and gifts.
He added that while Card Factory remains mindful of the ongoing impact of the cost of living crisis on its customers, the company is well positioned to make progress in this direction.
Analysis and commentaries
The impressive 27.1% increase in sales for the full year ending January 31st, highlights the strength of Card Factory’s physical stores, particularly in comparison to the slump in its online sales.
This is a reflection of the consumer preference to shop in-store as well as the impact of the Royal Mail strikes during the Christmas trading period.
Despite this, Card Factory’s online sales performance was still well above pre-pandemic times.
The rise in store revenue of 7.6% on a like-for-like basis can be attributed to the company’s strategic growth initiatives, targeted price increases, and a strong value for money proposition.
These are factors that have contributed to the positive momentum across the business.
The boost in pre-tax profits to £52.4 million from £11.1 million can be partially attributed to one-off benefits, however, the company has seen encouraging trading slightly ahead of the board’s expectations in the current financial year.
Darcy Willson-Rymer’s confidence in Card Factory’s ability to become the market-leading omnichannel retailer of cards and gifts is based on the company’s progress in strategic growth initiatives.
However, it remains to be seen how the ongoing impact of the cost of living crisis on its customers will affect its sales and growth prospects.
