Card Factory profits slide in full-year results

Card Factory has revealed that its underlying profit before tax fell 11.8% to £67.2m for the year ended 31 January 2020. 

In the same period, like-for-like sales were down 0.5%, reflecting “weak” consumer confidence and a decline in high street footfall in the second half of the year.

Nonetheless, the group saw “record” sales across Valentine’s and Mother’s Day for the third consecutive year, while cardfactory.co.uk sales increased by 14.8% 

In addition, since lockdown began, online trading at cardfactory.co.uk saw like-for-like sales rocket 302% and year-to-date sales surge 153%.

Meanwhile, gettingpersonal.co.uk also witnessed a “strong surge” in sales, with like-for-like sales up 68% and year-to-date sales up 27% since lockdown.

The retailer said the Covid-19 pandemic has impacted trading this year, and given the “uncertain economic backdrop”, it will not provide financial guidance for FY21.  

Card Factory also confirmed that a final dividend was not paid for this full-year, in efforts to protect its balance sheet amid the pandemic. It currently does not expect to pay any dividends in relation to its full-year 2021. 

In its latest update, Card Factory also confirmed it was planning to open 10% of its stores “around” 15 June following the government’s latest update for retailers.  

The group will ensure it remains compliant with the requirements for ‘Covid-Secure’, and has implemented in-store social distancing measures as well as the provision of PPE.

Karen Hubbard, CEO of Card Factory, said: “We delivered a reasonable sales performance in a challenging year for the high street, growing both our volume and value card market share in the mature and stable UK greeting card market.  

“Our profitability was, however, impacted by a number of recurring cost pressures and other one off operational costs which we were not able to fully mitigate.”

She added: “Our board and management team have reacted rapidly to the very dynamic situation and I am confident that we will exit this crisis with an operating model and customer proposition that will make Card Factory the customers’ first choice for greeting cards, everywhere and for all occasions, however the customer wishes to shop, although given the uncertainty we are unable to provide guidance on future performance.”