Card Factory celebrates strong Christmas trading, reiterates outlook
By Abigail Townsend
Date: Tuesday 14 Jan 2025
(Sharecast News) - Shares in Card Factory sparked in early trading on Tuesday, after the retailer confirmed robust trading over the crucial Christmas period.
The firm, which sells affordable greeting cards, gifts and other celebration items, said total revenues had grown by 4.7% in November and December, driven by a higher average basket value.
Like-for-like sales rose 3%, which Card Factory said reflected "the strength of our seasonal Christmas offer alongside the positive impact of our ongoing space optimisation programme".
The buoyant festive period contributed to total sales of £506.6m in the 11 months to 31 December, a 6.2% improvement year-on-year.
On a like-for-like basis, revenues rose 3.9% over the same period, with a 6.1% hike in gifts and celebration essentials helping offset a 10% decline in online sales.
Darcy Willson-Rymer, chief executive, said it had been a "successful" Christmas period.
He continued: "Continued revenue growth, combined with the benefits of our productivity and efficiency programme, have enabled us to navigate a challenging retail environment and deliver a robust performance in the second half.
"As a result, we expect to deliver full-year profits in line with expectations, and remain well position deliver to manage inflationary pressures in the near term."
As at 0945 GMT, shares in the FTSE All-Share stock were up 7% at 96.6p.
Analysts currently expect 2025 full-year adjusted profits to come in around £66m.
Looking to the 2026 full-year, Card Factory said the changes to National Living Wage and employer National Insurance contributions would increase costs by around £14m.
However, it continued: "We expect to offset this through our proven approach, which includes our ongoing productivity and efficiency programme, as well as range development and pricing."
It also left its guidance for the 2026 full year unchanged. Card Factory is currently forecasting a mid-to-high single digit percentage increase in adjusted pre-tax profit.
Russ Mould, investment director at AJ Bell, said: "Card Factory delivered a reassuring Christmas update, helping to calm some nerves around whether cash-strapped consumers would pull back from sending Christmas cards, given the high cost of stamps these days.
"Card Factory's cheap prices mean shoppers often walk out with much more than they intended to buy, loading up on items as they walk along the aisles."
Card Factory is due to publish full-year results in May.
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10 Lower Thames St,
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