Card Factory profits impacted by lower footfall
Greeting cards retailer Card Factory has seen its annual pre-tax profit decline by 1.1% to £82.8 million as trading was impacted by lower footfall.
In the year to 31 January, revenue climbed by 4.3% to £398.2 million. Card Factory stores achieved like-for-like sales growth of 0.4% despite a decline in shopper numbers.
Meanwhile, online sales at cardfactory.co.uk rose by circa 50% despite strong prior year comparatives.
Karen Hubbard, Card Factory chief executive, said: “Having joined the group just over a year ago, I have undertaken a detailed strategic review of the business and I am confident that our existing, proven four pillar strategy is the right one to ensure future business growth. However, with the benefit of fresh eyes, I believe that within the four pillars there are additional opportunities to further strengthen the business for the longer term, and these will be prioritised in the year ahead.”
During the year, Card Factory opened 51 net new stores in a variety of retail locations including high streets, shopping centres and retail parks. The new openings brought the total estate to 865 at the year end.
Looking at current trading, Hubbard added: “Whilst the new financial year is only two months old and seasonal sales patterns are distorted by Easter and Mother’s Day falling three weeks later than last year, we are pleased with everyday like-for-like sales in the year to date. I look forward to providing a further trading update at our AGM in May.”
