14th Nov 2019 08:56
(Alliance News) - Card Factory PLC on Thursday reported a "robust" sales performance, with growth accelerating from the year before.
Revenue growth in the nine months to October 31 was 5.0% on the year before, with the prior year period achieved 3.4% growth. Like-for-like growth was 0.9%, compared to flat a year before.
The Wakefield, Yorkshire-based greeting card and gift retailer's online business delivered 22% revenue growth for the period, well down from 71% a year before, the latter of which Card Factory described as a "strong performance".
Card Factory is planning on launching a new platform and website later in 2019. Third-quarter online sales grew by 16%.
The company said it continues to face external cost pressures such as the UK's national living wage, while year-to-date performance has also been hit by storage costs. Card Factory expects these to ease in its next financial year.
"I am pleased with our year-to-date performance. Our ongoing focus on customer experience, and the quality and range of our card and complementary non-card products, has led to an increased average spend both in stores and online. This has helped us to substantially offset the effect of the lower high street footfall experienced in the quarter and the corresponding impact on our like-for-like sales," commented Chief Executive Karen Hubbard.
"We remain on track with our new store roll out and are focused on pursuing other new growth opportunities and retail partnerships to extend our market penetration in the UK and overseas."
"Our quality/value proposition and new product ranges give us confidence that we are well positioned to deliver a good performance in our key fourth-quarter trading period. The board anticipates profit for the full year to be broadly in line with its previous expectations," she continued.
Shares were 0.6% lower on Thursday morning in London at 154.05 pence each.
By George Collard; [email protected]
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