TIDMCARD
RNS Number : 7621Z
Card Factory PLC
16 January 2024
16 January 2024
Card Factory plc
("cardfactory")
Trading Statement
Positive momentum across the business; effective execution of
growth strategy
Full year adjusted profit before tax expected to be at the top
of the range of market expectations
cardfactory, the UK's leading specialist retailer of greeting
cards, gifts and celebration essentials , announces a trading
update for the eleven months ended 31 December 2023.
Trading Update
-- Total sales for the eleven months ended 31 December 2023 of
GBP476.9 million (prior year of GBP432.6 million), an increase of
10.2% year-on-year, reflecting continued positive momentum across
the business and the effective execution of our strategy:
o Store revenue grew +8.2% on a Like-For-Like(1) (LFL) basis,
reflecting the strength of our value and quality proposition across
card and gifts combined with the positive impact of our Store
Evolution Programme.
o Continued positive performance in Everyday and seasonal card
ranges, with +5.4% LFL growth in the period. This was supplemented
by strong growth in our gifts and celebration essentials ranges of
+9.9% LFL, including double-digit growth in categories such as
candles and soft toys.
o Online(2) LFL sales of -12.8% for the 11 months to 31
December, an improvement from the half year driven by positive
performance in cardfactory.co.uk (YTD +0.2%), reflecting the
ongoing investment in online capability, platform performance and
customer experience.
o Further progress in Partnerships, including a profitable
contribution from new partnerships with Matalan and Liwa Trading
Enterprises.
o Recently acquired SA Greetings continues to perform in line
with expectations, contributing GBP9.1 million of revenue in the
period.
1 The Like-For-Like (LFL) calculation is based on gross sales
for Stores that were trading in both the current year and the
comparative period.
2 "Online": Like-for-like sales for cardfactory.co.uk and
gettingpersonal.co.uk combined.
Christmas Trading
-- Strong Christmas trading performance with LFL store revenue
+7.8% in November and December. This was driven by the increased
number of transactions and increased average basket value; targeted
price increases enacted in the prior year had fully annualised
before the Christmas period.
o Strong year-on-year growth in seasonal cards reflecting
insight-led innovation to develop and broaden the appeal of the
overall range.
o Expanded gift offer and introduction of key licensed ranges,
alongside the expansion of own label, resonated well with
customers.
o Very encouraging performance at cardfactory.co.uk with
double-digit LFL sales growth in November and December.
o Positive impact of our Store Evolution Programme enabled the
optimisation of space to ensure the correct balance between
Christmas cards, gifts and celebration essentials.
o Improvements in stock management and replenishment processes
enabled us to capitalise on particularly strong demand in the
second half of December.
Outlook
Given the strength of performance in the year to date, the Board
expects to deliver full year adjusted profit before tax (excluding
one off items) at the top of the range of market expectations(3)
and remains confident in the achievement of the long-term financial
and operational targets set out at our Capital Markets Strategy
Update in May 2023.
3 According to Company-compiled consensus estimates as of 15
January 2024, the current range of market expectations for FY24
adjusted profit before tax is GBP58.4 million to GBP62.0
million.
Darcy Willson-Rymer, Chief Executive Officer, commented:
"We are pleased to have delivered a strong performance over the
Christmas period, further demonstrating the progress we are making
on our strategic growth initiatives. Our value and quality
proposition continues to resonate with customers at a time when
value for money is as important as ever. Even during challenging
times, consumers want to celebrate key life moments and this was
reflected in the positive performance that we saw in the Christmas
trading period and throughout the year to date."
"Colleagues across all areas of our business have worked
incredibly hard to deliver an improved experience for our customers
this year. As we look ahead, we remain focused on delivering
against our growth strategy by helping our customers to affordably
celebrate all life's moments."
Notification of Preliminary Results
We will announce our Preliminary Results for the year ended 31
January 2024 on 30 April 2024.
Enquiries
Card Factory plc via Teneo (below)
Darcy Willson-Rymer, Chief Executive Officer
Matthias Seeger, Chief Financial Officer
Teneo +44 (0) 207 353 4200
James Macey White / Jo Blackshaw cardfactory@teneo.com
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END
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January 16, 2024 02:00 ET (07:00 GMT)
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