Card Factory swings to loss as coronavirus hits sales

The greetings card specialist suffered a £22.2m statutory pre-tax loss during the six months to July 31, compared with a £24.3m profit the previous year. 

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

The retailer’s sales slumped 49% to £100.5m during the six-month period, while like for likes in its core UK and Ireland business were down 4.4%.

Card Factory said the results were “in line with expectations” following the impact of store closures.

Revenues from the retailer’s physical locations were hammered during lockdown, but online sales jumped 64% on a like-for-like basis during its first half.

Card Factory said it was “well set up” for the crucial Christmas trading period, with trading “continuing on an improving trend”. During the four weeks to September 20, like for likes were down just 6.9% year on year.

Executive chair Paul Moody said: “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.”