Retailer Card Factory has rung up higher sales and profits as growth in its chain and offering helps it offset an “uncertain and inflationary” backdrop.
The group reported a 6.3% rise in underlying pre-tax profits to £66 million for the year to January 31 as revenues lifted 6.2% to £542.5 million.
It opened 32 new stores on a net basis, boosting its total estate to 1,090 as of the end of January.
It saw like-for-like sales lift 3.4% in the UK and Ireland, although it said a third of the rise was driven by price increases.
Efforts to revamp its offering also helped buoy sales, with the group having reviewed ranges and moved to focus on personalised print on demand and an expanded celebrations range, such as personalised balloons, tableware and decorations.
Its underlying profits were also helped by cost cutting initiatives, with the firm last year launching efforts to make savings in the face of the higher costs, such as a new workforce managing system and efficiencies across support functions.
It also closed its online gettingpersonal.co.uk offering at the end of January.
On a statutory basis, pre-tax profits fell 2.3% to £64.1 million.
It said the spring selling season had seen ongoing “good momentum”, helping to keep it on track with aims for profit growth in the new financial year.
This comes despite a hit of around £14 million from the increase in national insurance contributions and the minimum wage hike, with its overall inflation due to lift by 4% to 5% in the current year.
Darcy Willson-Rymer, chief executive of Card Factory, said: “Despite an uncertain and inflationary backdrop, we remain confident in our ability to deliver mid-to-high single-digit percentage profit growth, underpinned by our strategic focus, our ongoing productivity and efficiency programme and our strong financial discipline.”
Retail analyst Russell Pointon at Edison Group said: “The company’s success in entering new product categories is evident, outperforming a weak celebrations market.”
He added there was also a “confident tone regarding the outlook”, but shares in Card Factory dropped 5% in morning trading on Wednesday.
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