Card Factory swings to FY profit as revenues recover
Card Factory said on Tuesday that it swung to a full-year profit, with revenues boosted by a recovery in store trading following the easing of Covid restrictions, as it struck an upbeat note on the outlook.
In the year to 31 January 2022, the retailer swung to a pre-tax profit of £11.1m from a loss of £16.4m the year before, with revenues up 28% at £364.4m. This was driven by a steady recovery in store performance following the easing of lockdown restrictions, alongside an online performance "significantly ahead" of pre-pandemic levels, it said.
Store sales rose 33% year-on-year, reflecting a 20% increase in trading days and a recovery in market share, with LFL sales for the Christmas season recovering to near pre-pandemic levels. Meanwhile, online LFL revenue dipped 1.5% as customers returned to physical stores.
Chief executive Darcy Willson-Rymer said: "We are pleased to report a robust performance for the year, ahead of our original expectations, alongside good progress on our strategic transition, despite the operational challenges the last year brought.
"We saw a steady recovery in store performance as lockdown restrictions eased, particularly in the run up to Christmas with store sales approaching pre-pandemic levels in this key trading period. As we reopened our stores, we saw our online performance decline slightly year on year; however, we remain greatly encouraged that our Card Factory online sales were significantly ahead of pre-pandemic levels. This year will see us make further progress in developing our customer proposition, through a broader product range and improved online experience, as part of our transition to a leading omnichannel retailer."
The retailer said trading in the new financial year has been in line with its expectations and is contributing to a continued recovery of market share position. It expects the business to deliver revenue recovering towards pre-pandemic levels in FY23.
At 0812 BST, the shares were up 8.2% at 63.27p.