Card Factory PLC has released a trading update for the eleven months ended 31 December 2023, indicating positive momentum across the business and effective execution of its growth strategy. The company expects its full-year adjusted profit before tax to be at the top of the range of market expectations. Total sales for the period were £476.9 million, reflecting a 10.2% year-on-year increase. The company's store revenue grew by 8.2% on a Like-For-Like (LFL) basis, with continued positive performance in everyday and seasonal card ranges, as well as strong growth in gifts and celebration essentials. The online LFL sales improved, driven by positive performance in cardfactory.co.uk. The company also made further progress in partnerships and reported that the recently acquired SA Greetings performed in line with expectations, contributing £9.1 million of revenue in the period.
During the Christmas period, Card Factory PLC experienced strong trading performance, with LFL store revenue up by 7.8% in November and December. This was driven by increased transactions and average basket value, as well as targeted price increases enacted in the prior year. The company saw strong year-on-year growth in seasonal cards, expanded gift offers, and a very encouraging performance at cardfactory.co.uk. The positive impact of the Store Evolution Programme enabled the optimization of space to ensure the correct balance between Christmas cards, gifts, and celebration essentials. The company also improved stock management and replenishment processes to capitalize on strong demand in the second half of December.
Given the strong performance in the year to date, the Board expects to deliver full-year adjusted profit before tax at the top of the range of market expectations and remains confident in the achievement of the long-term financial and operational targets. Darcy Willson-Rymer, Chief Executive Officer, expressed satisfaction with the strong performance over the Christmas period and emphasized the progress made on strategic growth initiatives. He highlighted the company's value and quality proposition, which continues to resonate with customers, and expressed confidence in delivering against the growth strategy. The company will announce its Preliminary Results for the year ended 31 January 2024 on 30 April 2024.