Expansion ahead for fast growing Card Factory

Card Factory plans to open 50 stores this year

The Wakefield-based company said like-for-like sales rose to the upper end of its target of 1 to 3 per cent during the three months to April 30. This was a marked improvement on the 0.6 per cent growth in the year to January 31 when shoppers reined in their spending.

Underlying group sales rose 6.1 per cent after taking into account an extra day's trading last year because of the leap year, an improvement on the 4.3 per cent growth last year.

The group opened 11 new stores over the quarter and is on track to open 50 stores this year.

Card Factory's chief executive Karen Hubbard said: "We have had a good start to the year with like-for-like store sales at the upper end of our targeted range. Our store opening programme remains on track and we are pleased with the performance of this year's openings, including strong initial sales from the increased proportion of openings in retail parks.

"We have also seen sales growth from cardfactory.co.uk and, encouragingly, the sales performance of Getting Personal is starting to improve following recent management changes with the business continuing to target annual sales growth in excess of 10 per cent."

She said the group is in "a really strong position" with a significant number of opportunities to improve the business in the months and years ahead.

"The board's expectations for the full financial year remain unchanged and I look forward to providing further updates as the year progresses," she added.

The group has 876 stores and plans to increase the number of retail park stores, which are performing well.

The firm said trial stores in the Republic of Ireland are performing well and it plans to open more.

It said that revenue from the Card Factory website continues to grow, albeit from a small base. The group has expanded and improved the range of card and non-card products available on the website, both personalised and non-personalised, as it increases its share in online, a fast growing sector of the market.

The group plans to make a further return of surplus cash to shareholders towards the end of the current financial year.

The firm is highly cash generative, driven by strong operating margins and low capital expenditure requirements.

In January Card Factory announced that CFO Darren Bryant wanted to retire after eight years with the group. In April it announced the appointment of Kris Lee as Mr Bryant's successor and a start date has now been set for July 3. Following a handover period Mr Bryant will retire from the board and leave the group on July 31 when Mr Lee will assume the role of CFO.