Card Factory operating profits fall 4.9%

Card Factory
// Card Factory posts flat like-for-likes for FY19
// Revenue up 3% to £436m from £422.1m in 2018
// Underlying EBITDA declined by 4.9% from £94m in 2018 to £89.4m

Card Factory’s like-for-like sales have remained flat in its full year results for 2019 thanks to the high street’s declining footfall.

However, the retailer said its revenue rose by three per cent to £436 million from £422.1 million in 2018.

Despite this, underlying EBITDA declined by 4.9 per cent from £94 million in 2018 to £89.4 million.

Card Factory reported a “strong performance” in its seasonal cards across key occasions.

Furthermore, online sales surged by 56.3 per cent against strong prior year comparatives, as the retailer aimed to attract customers by offering products that were unavailable in stores.

“We delivered a robust performance for the year, maintaining flat like-for-like sales despite a tough consumer environment,” Card Factory chief executive officer Karen Hubbard said.

“Whilst the new financial year is just two months old, we are satisfied with the start we have made and are particularly pleased with record seasonal performances from Valentine’s Day and Mother’s Day.

“As previously stated, EBITDA for the forthcoming year is anticipated to be broadly flat year-on-year (excluding the impact of IFRS 16) in light of various external pressures, but we are confident we are laying the right foundations for future profit growth, whilst continuing to deliver healthy returns of cash to our shareholders.”

The retailer opened 51 new stores within the period, which brought its total sites to 972, and has also announced further store openings for 2020.

It was also aiming to reduce printing costs with further opportunities by next year.

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