Following today’s release of Card Factory’s figures for the 11 months ending 31 December 2023; Tash Van Boxel, Retail Analyst at GlobalData, a leading data and analytics company, offers her view: “Card Factory revels in another stellar set of results, with total sales up 10.2% to £476.9m for the 11 months ending 21 December 2023. These results were driven once again by its offline operations, where it has continued its store expansion initiative and ongoing success in partnerships with Matalan and Liwa Trading Enterprises in the UAE. This culminated in store like-for-like (l-f-l) sales improving on the previous year, up 8.2%, against a strong comparative (+7.1%). Card Factory is resilient in a decelerating greeting cards market as many shoppers seek to cut costs when gift-giving. Yet its everyday and seasonal card ranges have retained appeal, with l-f-l growth of 5.4%. The card specialist’s focus on value and efficient stock management will ensure Card Factory maintains its popularity among consumers, enabling consumers to pick up cards and gifts at competitive prices. As a result, profits are anticipated to be at the top end of estimates for the financial year, with profit before tax already up 72.7% in the six months to 31 July 2023.
“Christmas trading has been favourable for Card Factory, with l-f-l store trading up 7.8% for November and December 2023 due to both increases in volume and value of transactions. Card Factory must continue the expansion of its licensed ranges to maintain appeal, as this will ensure the retailer can capture consumers seeking higher-quality gifting options as the cost-of-living crisis eases through 2024, having already established itself as a destination for value.
“Card Factory’s online platform continues to pull down its performance. Indeed, online sales declined 12.8%, against a weak comparative in FY2022/23 (-7.6%). It must invest in its online fascia to ensure that it does not fall too far behind its online pureplay rival Moonpig, which saw pro forma growth of 2.1% for the six months to 31 October 2023. Given its existing competitive delivery costs, Card Factory must focus instead on increasing the promotion of its click & collect service, as this will give it an edge over its pureplay competitors by enabling consumers to bypass potential late deliveries caused by couriers.”
