Card Factory reported a rise in sales for the first quarter of 2019, despite a challenging trading environment for UK retailers.
According to the trading update, the first quarter saw total Group sales growth of 6.4%.
Like-for-like sales were up 2.3% during the quarter, boosted by the opening of 14 net new stores.
Card Factory also said that there was strong cash generation across the period, and expectations for the year remain unchanged.
Karen Hubbard, Card Factory’s Chief Executive Officer, commented on the quarter:
“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. 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. We continue to improve the range and quality of card and non-card options. Our store opening programme remains on track and we are pleased with the performance of recent openings.
“Overall, Card Factory remains in a strong position, continuing to grow market share, with lessening cost headwinds and a platform for medium term growth.”
The results prove encouraging against a backdrop of a record number of retailers closing their doors.
Just today, it was reported that Sir Philip Green’s Arcadia empire is hanging in the balance, as it looks to get lenders to agree to a rescue deal.
Card Factory was founded by Dean Hoyle and his wife, Janet back in 1997. It is listed not the London Stock Exchange and is a constituent of the FTSE 250 Index.
Shares in the company (LON:CARD) are up +0.62% as of 12:58PM (GMT).
