THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Card Factory posts fall in profit after facing cost headwinds

Greeting cards retailer Card Factory has seen its full year pre-tax profit decline by 12.3% to £72.6 million after facing “tough” trading conditions and cost headwinds.

GENERAL MERCHANDISE

Card Factory posts fall in profit after facing cost headwinds

Greeting cards retailer Card Factory has seen its full year pre-tax profit decline by 12.3% to £72.6 million after facing “tough” trading conditions and cost headwinds.

In the year to 31 January, underlying pre-tax profit dropped by 5.5% to £80.5 million although revenue was up 6% to £422.1 million. On a like-for-like basis, sales were up 2.9%,

Karen Hubbard, Card Factory chief executive, said: "We delivered strong like-for-like sales growth in a tough trading environment. We sold more cards than the prior year, and delivered a higher average card selling price and total basket size.

"From a profit perspective, we faced strong headwinds of £14.6 million in the year, principally due to the combined impact of foreign exchange and national living wage.”

Card Factory said it is looking to benefit from a range of cost saving initiatives which have already helped the business but warned that EBITDA growth in the current financial year is likely to be limited given the continuing cost headwinds.

During the year, Card Factory opened 50 net new stores in high streets, shopping centres and retail parks, to bring the total UK estate to 915. It also launched six trial stores in the Republic of Ireland.

The company said it is satisfied with how it has started the new financial year and with its record performances across Valentine's Day, Mother's Day and Easter.

Card Factory will be focusing on improving store productivity and supply chain efficiency in the current year as it works to mitigate external pressures and maintain margins.

Hubbard added: "Our unique, vertically integrated business model remains strong and we have now established a solid platform for future growth, with our four-pillar strategy continuing to support strong cash generation and a progressive dividend policy.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2018
The HR Summit 2018
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues