Moonpig Group PLC (LSE:MOON) will post its full-year results on Wednesday 29 June, with its share price trading almost a third below its February 2021 float price as it is dragged down in the wider sell-off of online retailers.
In April, the online gift retailer raised revenue forecasts for the year to £300mln thanks to the high demand during last year’s COVID lockdowns and a successful Mother’s day.
The group is also snapped up Smartbox, the owner of the Red Letter Days gift experiences platform, for £124mln in cash, although any sales made via the new subsidiary will not feature in the upcoming statement, given a deal will not be completed until late July.
Since its initial public offer at 350p early last year, the shares quickly flew to above 450p before stumbling to below 200p in April this year.
At 241p, they have perked up from those lows but hitting the revised guidance in Wednesday’s final results could help Moonpig recover its wings, though news on good recent trading and guidance for next year, which with the acquisition is expected to be around £350mln, will be even more important.
"Moonpig will not be immune from the consumer downturn: greetings cards do tend to have a low income elasticity, but Moonpig’s products are premium, and trading down in the sector is not impossible," said analyst Jonathan Pritchard at Peel Hunt.
That said, he believes the group's customer relationship management (CRM) system and evolving offer in cards and gifts "mean that momentum is likely to persist here".