Card Factory reports strong Christmas sales growth as UK store network surpasses 900

Card Factory, the Wakefield-headquartered specialist retailer of greeting cards, dressings and gifts, has announced a growth in sales over the Christmas period and new store openings.

During the 11 month ending on 31st December 2017, the retailer reported a sales growth of 5.9%, and a 2.7% increase in like-for-like store sales.

In this period, Card Factory opened 48 new UK stores, bringing the total estate to 913 stores.

In addition, the retailer also launched six new trial stores in the Republic of Ireland throughout the year.

Karen Hubbard, Card Factory’s chief executive officer, said: “As I approach my second anniversary with the business, it is pleasing to report that Card Factory has traded well through the competitive Christmas trading period with customers once again responding positively to our card and non-card ranges. As a result, like-for-like store sales have improved in the year to date.

“As we have reported previously, the Group has faced significant cost pressures in the year; these, together with the further change in margin mix given the ongoing out-performance of lower-margin non-card categories, are reflected in our expected outturn.

“We anticipate that the combined impact of foreign exchange and wage inflation in FY19 will result in £7-8m of additional costs; whilst we have plans to mitigate this impact as far as possible, we recognise that against this backdrop, any EBITDA growth for the year is likely to be limited.

“Looking further ahead, cost headwinds should ease unless there is a further dramatic shift in sterling. We believe that our market leading proposition, underpinned by our unique vertically integrated model, provides our business with significant competitive advantage.”

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