Card Factory slumps to loss as coronavirus batters sales

The retailer suffered a statutory pre-tax loss of £14.6m during the 12 months to January 31, compared to a £65.2m profit the previous year.  

On an underlying basis, Card Factory posted a pre-tax loss of £15.2m, tumbling from a £67.2m profit the prior year. Underlying EBITDA dropped 62.7% to £47m. 

Card Factory said total revenues slumped 36.9% to £285.1m during the year, though like for likes inched up 0.1% as online sales soared 135.3% during the pandemic.

The group said its stores were closed for an average of five months during the fiscal year, causing a “significant impact” on profitability.

But it hailed “better than expected” performance following the lifting of the first and second lockdowns, and the “high growth” in its ecommerce business despite fierce online competition from the likes of newly floated Moonpig.

However, Card Factory cautioned that the third lockdown impacted the first two-and-a-half months of its 2021/22 financial year, including the crucial Valentine’s and Mother’s Day periods.

It said that “strong” initial pent-up demand after stores reopened on April 12 had “steadied” but insisted performance since then was “in line with expectations”.

Card Factory boss Darcy Willson-Rymer said: “Since joining Card Factory in March 2021, I’ve been immensely encouraged by what I have seen and heard. We have successfully reopened our entire store estate following the third lockdown and delivered a reassuring performance in stores, whilst maintaining online momentum.

“Our powerful brand and unique business model means we are well placed to respond positively to the changing retail environment and to unlock the inherent potential in this business.”

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