Card Factory (LON:CARD), the UK’s leading specialist retailer of greeting cards, said on Wednesday that sales for the first-quarter grew 6.4%, citing however the difficult trading environment which has limited growth.
Like-for-like sales grew by 2.3% and, in the context of the continued challenging consumer environment, this performance demonstrates strength of its quality and value offer, Card Factory said.
During the quarter, Card Factory opened 14 net new stores in the UK, bringing its total store figure to 979. The company has confirmed that it remains on target to open roughly 50 net new stores in the current financial year, with a number to be opened in the Republic of Ireland and retail parks – locations where its stores continue to perform well.
Its online shop also had a good start to the year seeing continued revenue growth. Online success for Card Factory was driven by the popularity of new ranges and designs across its personalised and non-personalised products.
“We have had a positive start to the year with like-for-like sales growth despite challenging consumer sentiment and negative footfall on the High Street,” Karen Hubbard, Chief Executive Officer of Card Factory, commented on the results.
Indeed, the challenges to hit the high street are by no means unknown, as various retailers have warned of conditions over recent months.
“We have seen a good customer reaction to our seasonal card ranges over the quarter, with yet again record card sales in volumes and value for both Valentine’s Day and Mother’s Day,” the Chief Executive Officer continued.
Karen Hubbard also confirmed that the company’s store opening program remains on track, and the business as a whole considers itself in a strong position as it continues to grow its market share.
As for its outlook, Card Factory has warned that given the continuation of challenging consumer conditions, it expects like-for-like sales for the year to be marginally positive. Full year profit expectations remain unchanged.
Earlier this year, Card Factory posted its preliminary results for the year to January, in which it revealed a decrease of like-for-like sales by 0.1%, attributed to a drop in footfall.
At 08:44 BST Wednesday, shares in Card Factory plc (LON:CARD) were up 3.58%.