10th Jan 2023 12:15
(Alliance News) - Card Factory PLC on Tuesday said trading was ahead of expectations, as high street spending increases.
The Wakefield, England-based greeting cards, gifts, wrap and bags retailer said sales for the 11 months that ended December 31 were GBP432.6 million, increasing 28% from GBP337.3 million a year ago.
The company said the sales increase reflected continued good momentum and a shift in customer spending back towards the high street, with like-for-like store revenue increasing by 7.1%.
Card Factory reported strong Christmas trading, with an increase in both store transactions and average basket value. The company said the improvements were supported by "compelling value for money" and range development.
Card Factory added that forward ordering and delivery of Christmas ranges also enabled strong availability in stores over the Christmas period.
However, the return of customers to the high street, as well as Royal Mail strikes, caused online sales to drop by 28% from a year ago, with online sales slightly up on pre-pandemic levels, the company noted.
Given current momentum, the company said it expects earnings before interest, taxes, depreciation and amortisation for the 12 months ending January 31 to be at least GBP106 million, above the current market consensus of GBP96.9 million.
Chief Executive Officer Darcy Willson-Rymer said: "We're pleased and encouraged by the continued strong performance of the business. With delivery of our growth strategy progressing well, it is great to see some of the benefits from this work starting to come through in our financial performance."
Card Factory shares were up 5.0% trading at 91.54 pence per share at midday on Tuesday in London.
By Harvey Dorset, Alliance News reporter
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