High StreetNews

Card Factory swings to profit in FY22

The company has also taken action to mitigate inflationary headwinds, including targeted price increases

Card Factory plc has reported its pre-tax profits surged 167.7% to £11.1m for the year ended 31 January 2022 (FY22), compared to a loss of £16.4m in FY21.

It said the performance comes in ahead of management’s expectations and amid “significant” trading disruption and inflationary cost pressures.

Revenues also increased 28% year-on-year from £285.1m to £364.4m, which 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.

Overall, store sales grew 33% year-on-year, reflecting a 20% increase in trading days and recovery in market share, with the Christmas season approaching pre-pandemic like-for-like levels.

However, like-for-like online revenues for the Card Factory fell 1.5% which the company said reflects the easing of lockdown restrictions and the return of customers to physical stores. Additionally, online net revenue fell 13.5%, incorporating gettingpersonal.co.uk like-for-like of -21.6%. 

Meanwhile, the Card Factory’s online like-for-like revenue surged 135% compared to FY20, reportedly reflecting the expansion of the company’s product range online and the shift in consumer online shopping behaviours.

Looking ahead to FY23, the board expects the business will deliver revenues recovering towards pre-pandemic levels, despite expecting “significant” inflationary headwinds to continue throughout the year. The board maintains expectations of longer-term growth for the business and its expectations for revenues is in excess of £600m for FY26.

Additionally, the Card Factory said action has been taken to mitigate a proportion of inflationary headwinds through the management of costs and working capital, as well as targeted price increases.

Darcy Willson-Rymer, chief executive officer, 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.

“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.”

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