Card Factory swings to full year loss
Card Factory has swung to a full year loss after its store estate was closed for an average of five months due to Covid-19 lockdowns.
In the year to 31 January, the greeting cards retailer recorded a pre-tax loss of £16.4 million compared to a profit of £65.2 million in the previous 12-month period.
Revenue declined by 36.9% to £285.1 million due to the impact of lockdowns on trading. Covid-19 also led to a postponement of some planned new store openings in the year. While store sales declined by 41.3%, online sales surged by 42%.
During the year, Card Factory welcomed Darcy Willson-Rymer as its new chief executive and also announced a successful refinancing with its existing commercial banking syndicate.
Willson-Rymer said: “We have successfully reopened our entire store estate following the third lockdown and delivered a reassuring performance in stores, whilst maintaining online momentum. Our powerful brand and unique business model means we are well placed to respond positively to the changing retail environment and to unlock the inherent potential in this business. The recent refinancing provides sufficient resources for us to do that by building on our excellent platform to drive future growth. I am excited about the opportunities ahead.”
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