Card Factory (LSE:CARD) PLC swung into profit in the interim, “reflecting a return to more normal lifestyles post-pandemic’ and said its expectations for the remainder of FY23 are unchanged given the challenging economy.
The UK’s leading specialist retailer of greeting cards, gifts, wraps and bags posted a profit before tax of £14.3mln compared with a £6.5mln loss in the six months to July-end.
Like-for-like revenue grew 4.1%, while store sales up 81.8% or 6.1% when adjusted for lockdown restrictions.
EBITDA almost doubled to £43.8mln as the business continued to manage inflationary headwinds through a combination of efficiency measures and targeted price increases, a statement said.
"We are pleased to report a strong performance through the half which reflects continued good momentum within the business, as well as the reversal of lockdown trends with customers choosing to return to the high street,” Darcy Willson-Rymer, chief executive, said.
“The pronounced shift in spend back towards stores supports our continued conviction in the value of our store estate within our customer proposition and as an enabler in our omnichannel ambitions.”
Card Factory (LSE:CARD) rolled out a new model store format in five locations to evolve the customer experience, while final preparations for Click & Collect trial launched in 84 stores.
The company expects to continue managing inflationary pressures via a combination of targeted price rises and efficiency measures, with the business being hedged on energy costs until September 2024 and currency beyond the current financial year.
The combination of good trading momentum in everyday products, market uncertainty around consumer behaviour through the Christmas season amid the cost-of-living crisis and the current inflationary outlook means its expectations for the remainder of FY23 are unchanged.
“Whilst we remain mindful of the challenging economic backdrop as we head towards the Christmas season, we feel well placed to navigate this and retain our focus on transitioning Card Factory to a market leading omnichannel retailer of cards and gifts," Willson-Rymer said.