Moonpig toasts ‘strongest ever’ trading in run up to Valentine’s Day
Moonpig, the online greeting card platform that listed on the London Stock Exchange this month, said this morning that it expects to double revenues this year as it toasted its its “strongest ever” trading week ahead of Valentine’s Day.
The digital retailer said revenue for the financial year ending 31 April 2021 is expected to be double the £173m posted in the previous year after bumper sales during the coronavirus pandemic.
The “significant” increase in demand experienced in the first half of the year has continued into the third quarter, Moonpig said this morning.
Purchase frequency has been elevated due to Covid-19 restrictions, that have forced non-essential stores to close and banned most contact between different households.
Meanwhile, average order values have risen as more customers have been adding gifts to their baskets. However higher levels and values of purchases are expected to moderate as lockdown restrictions are lifted.
Moonpig has boosted marketing spend and has been hit with extra costs due to higher temporary staffing levels in the supply chain.
Underlying earnings before tax, interest, depreciation and amortisation margin for the financial year is expected to be in line with the previous year.