Strong Christmas trading boosts Card Factory profits

Card Factory has revealed that its annual profits are set to reach the top of previous targets after a “strong” Christmas period.

The high street chain saw demand for gifts help to boost sales across its shops.

Darcy Willson-Rymer, chief executive officer of the business, said it made progress with its growth strategy to drive the “strong performance” in recent months.

It told shareholders that total sales grew by 10.2% to £476.9 million for the 11 months to December 31, compared with the same period last year.

Store revenues grew by 8.2% on a like-for-like basis, with the firm highlighting continued demand for gifts and cards.

Meanwhile, it said online like-for-like sales dropped by 12.8% for the 11-month period.

The retailer now “expects to deliver full-year adjusted profit before tax (excluding one-off items) at the top of the range of market expectations”, it said.

Mr Willson-Rymer said: “Our value and quality proposition continues to resonate with customers at a time when value for money is as important as ever.

“Even during challenging times, consumers want to celebrate key life moments and this was reflected in the positive performance that we saw in the Christmas trading period and throughout the year to date.

“Colleagues across all areas of our business have worked incredibly hard to deliver an improved experience for our customers this year.

“As we look ahead, we remain focused on delivering against our growth strategy by helping our customers to affordably celebrate all life’s moments.”

Analysts at Peel Hunt said the update showed a “decent Christmas in challenging sector” amid weak high street footfall.

However, shares in the retailer slipped by 6.6% to 100.6p in trading on Tuesday morning.