Cardfactory revenue rises 5.3% but like-for-like store sales fall
Cardfactory has reported an increase in first half revenue, although like-for-like store sales declined following weaker footfall.
In the six months to 31 July, group revenue grew by 5.3% year-on-year to £260.8 million, as group trading was boosted by Cardfactory’s acquisition of Funky Pigeon and continued growth in wholesale sales.
Subscribe to TRBHowever, total store sales declined by 0.7% as weaker consumer confidence and hot weather impacted footfall. On a like-for-like basis, store sales fell by 2%.
Adjusted pre-tax profit was down in the period, coming in at £12.7 million compared with £13.2 million a year earlier, as improved store profitability was offset by investment in digital and Cardfactory’s international businesses to support future growth.
The retailer attributed the improvement in store profitability to higher profit margins and the benefits of its “Simplify & Scale” efficiency and productivity programme.
Cardfactory said its Republic of Ireland stores continued to perform well, with total store sales up 24.3% and like-for-like sales up 5.6%.
Darcy Willson-Rymer, chief executive of Cardfactory, said: “We made further progress in the first half towards building a broader, more diversified celebrations business.
“Despite continued pressure on the UK consumer, group revenue increased and profitability remained broadly flat, with improved store profitability and disciplined working capital management delivering strong free cash flow.
“We remain focused on strengthening our store estate and increasing our share of the celebrations market. During the first half, we continued to optimise our stores and space, strengthened our value proposition and rolled out our new party range.
“In addition, the ongoing development of our partnerships and international businesses are broadening our reach and creating further opportunities for growth, and the integration of Funky Pigeon and delivery of the expected synergies remain on track.
“We are confident of delivering full-year expectations with strong Golden Quarter plans in place, supported by significant product newness and a further strengthening of our great value offer.”
