Card Factory sales growth slows but retailer on track for year end

The Wakefield-based retailer said revenue for the nine months to October 31 was up 7.9 per cent, compared to 8.7 per cent in 2014.

Net debt was marginally higher than reported in the interim results due to building up stock for the Christmas period, it said.

Revenue growth was driven by a combination of like-for-like sales growth, new store roll out and growth in “complementary online activities”.

Nine net new stores opened in the third quarter, bringing year-to-date openings to 45. Its estate now totals 809 stores.

The firm said it is on track to open 50 stores this year. “We remain confident of continuing our historic opening rate of approximately 50 net new stores per annum,” it added.

Card Factory’s main online business, Getting Personal, saw good third quarter growth but is now facing “more challenging comparative figures” after growing 27.1 per cent in the second half of 2014, the firm said.

Its trial of a Card Factory transactional website is ongoing, introducing ranges of personalised cards and gifts to the website for the first time.

The planned 2.5p interim dividend and 15p special dividend announced on September will be paid to shareholders on November 27.

Chief executive Richard Hayes said: “We have seen another period of consistent performance across the group as we continue to drive growth from existing and new stores, as well as our expanding online operations.

“We are well prepared for the important, competitive Christmas period, and remain confident of our ability to continue to increase market share whilst delivering on all four pillars of our growth strategy.”