Card Factory, the UK's leading greeting cards retailer, has reported a significant increase in profits for the 12 months to 31 January. Pre-tax profits rose to £52.4m, up from £11.1m the year before, a 368.5% increase. The figure includes a £3.5m one-off benefit.

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The retailer attributed the strong performance to a surge in store-based sales and Everyday card ranges, as well as a successful Christmas trading period. Store sales grew 7.6% on a like-for-like basis, while total sales rose 27.1% to £463.4m.

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However, online sales dropped 18.8% due to customers favouring physical stores and the impact of the Royal Mail strikes during the Christmas trading period.

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Darcy Willson-Rymer, Chief Executive of Card Factory, said: “I have been incredibly pleased with our performance this year which has been ahead of expectations. These strong results reflect positive momentum across the business, including notable progress on our strategic growth initiatives, buoyed by the marked shift of customer spend back towards the high street.”

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Willson-Rymer added that the retailer had implemented proactive measures to manage inflationary pressures, and was confident that it was well-positioned to become the market leading omnichannel retailer of cards and gifts.

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The news follows a difficult year for the retail sector, with many businesses struggling to stay afloat due to the impact of the coronavirus pandemic. However, Card Factory’s strong performance is a sign that shoppers are returning to stores and that the sector is beginning to recover.

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Retail Gazette. (2023). Card Factory
Sources: https://www.retailgazette.co.uk/blog/2023/05/card-factory-profit/