Card Factory swings to £22.2m half-year loss

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Card Factory trading update covid-19 pandemic Paul Moody
On an underlying basis, Card Factory’s pre-tax losses reached £22.3 million
// Card Factory swings a £22.2m statutory pre-tax loss in the six months to July 31
// Sales dropped 48.6% to £100.5m during the six-month period
// Like-for-likes in its core UK & Ireland business was down 4.4%

Card Factory has swung to a half-year loss after the Covid-19 pandemic affected its trading.

The greetings card retailer saw a £22.2 million statutory pre-tax loss in the six months to July 31, compared to a £24.3 million profit the previous year.

On an underlying basis, Card Factory’s pre-tax losses reached £22.3 million.


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Meanwhile, the retailer’s sales dropped 48.6 per cent to £100.5 million during the six-month period, while like-for-likes in its core UK and Ireland business was down 4.4 per cent.

Card Factory said the results reflected the impact of store closures across the UK and Republic of Ireland from March 23 due to lockdown.

However, the retailer managed costs and working capital commitments as well as reducing capital investment to £9.8 million to conserve cash during the period.

Card Factory recorded a strong online performance during the period with a 64.4 per cent like-for-like revenue growth due to the increased demand during the period of store closures and the positive response following the website relaunch on July 2.

“I am extremely proud of all colleagues working across every part of our business for the significant contribution they have made throughout this period of unprecedented disruption,” Card Factory executive chairman Paul Moody said.

“In particular, for their unrelenting focus in driving the very successful phased store-reopening programme.

“The combination of our unique customer insight, vertically integrated business model and market leading position continues to ensure that we are well positioned to meet the increased online demand, supply our commercial partners and to present the optimum ranges in our stores.

“We are pleased with both the trading performance as our stores have reopened and the positive feedback from customers who are visiting less frequently, but spending more.

“Recognising the uncertainty of the impact of further Covid-19 measures and changes in consumer behaviour in the short term, we are focused on a flawless execution of Christmas and the implementation of our refreshed strategy.”

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