Card Factory posts sales boost despite ‘challenging’ market conditions
Card Factory has posted a modest rise in sales for the first quarter as strong performance in its range of seasonal cards helped offset tough conditions on the high street.
Like-for-like sales rose 2.3 per cent in the three months to the end of April as the firm cashed in on a spike in demand on Valentine’s Day and Mother’s Day.
Read more: Fund manager Neil Woodford doubles stake in Card Factory despite high street woes
The FTSE 250 firm said it was an “encouraging start to the year”, though the figures were flattered by poor trading in the comparative period last year.
Card Factory opened 14 new UK stores in the first quarter, and said it was on track to open 50 branches over the financial year.
While the firm is contending with a decline in footfall on the high street, its online business has continued to grow revenue.
Shares in Card Factory rose as much as three per cent in early trading.
“We have had a positive start to the year with like-for-like sales growth despite challenging consumer sentiment and negative footfall on the high street,” said chief executive Karen Hubbard.
“Overall, Card Factory remains in a strong position, continuing to grow market share, with lessening cost headwinds and a platform for medium term growth.”
Read more: Card Factory sales flat as high street footfall drops
Card Factory warned of continued economic uncertainty over its key trading periods in the year ahead.
But the firm maintained its profit guidance and said it expects like-for-like sales for the full year to be “marginally positive”.