Card Factory (LSE:CARD) said profits this year will be at the top of market forecasts after strong trading through its stores in the run-up to Christmas.
Like-for-like store revenue was up by 7.8% in November and December as the number of transactions rose and average basket value increased, helped by targeted price rises.
Christmas and seasonal cards did well, the statement added, as did an expanded gift offer with the addition of key licensed ranges.
Card Factory (LSE:CARD)’s online arm also showed signs of improvement with double-digit like-for-like sales growth in November and December, which reduced the 11-month decline to 12.8%.
Total sales for the 11 months ended 31 December 2023 were £476.9 million (prior year of £432.6 million), an increase of 10.2% year-on-year.
Store revenue grew 8.2% on a like-for-like basis, with card sales rising by 5.4% and gifts by 9.9%.
As a result, Card Factory said its adjusted profit before tax (excluding one-off items) would be at the top of market expectations of between £58.4 million and £62 million.
Darcy Willson-Rymer, chief executive, commented: ”Even during challenging times, consumers want to celebrate key life moments and this was reflected in the positive performance that we saw in the Christmas trading period and throughout the year to date."
Shares eased 3.4% to 104p.