Moonpig said it is on track to meet its 2025 guidance despite the ongoing a challenging environment and consumers pulling back on larger gifting.

In an update this morning, the online retailer said its trading was in line with expectations thanks to “consistent strong sales and orders performance at Moonpig supported by steady progression at Greetz towards positive sales growth”.

This was despite ongoing macro headwinds in gifting and challenging trading of its Experiences category.

Moonpig said both its website conversion rates and new customer acquisition have improved, and it’s subscriber base for its Moonpig Plus membership is continuing to grow.

It said the business has a “strong roadmap” of future technology innovations that it expects to drive further growth.

As such, it expects its sales growth for the year to be at a mid-to-high single digit percentage rate and an adjusted EBITDA margin rate of approximately 25% to 26%.

Moonpig chief executive Nickyl Raithatha said: “Our ongoing investment in technology innovation and AI means that Moonpig Group is now consistently delivering year-on-year growth in revenue, profit and cash flow, driving sustained positive momentum in our trading performance.

“We are committed to innovation to attract and retain loyal customers and remain well positioned to benefit from the long-term structural market shift to online.”

This week Moonpig revealed it had partnered with toys retailer The Entertainer to launch a curated selection of toys that can be bought alongside its personalised cards.

Customers will have access to up to 200 new products from The Entertainer and its Early Learning Centre business, including popular brands such as Paw Patrol, Barbie and Squishmallows.

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