Tough Consumer Environment Blamed
- Profits fall by 8.3% at Card Factory
- Like-for-like sales decrease by 0.1%
- Online sales surge by 56.3%
- Revenue increases to £436m
- 51 new stores opened in the year
- Underlying earnings per share down to 17.6p from 18.9p
- Total dividend per share maintained at 9.3p
- EBITDA impacted by lower footfall and Getting Personal’s performance
- Focus on customer offer improvements and cost savings
- Record seasonal performances for Valentine’s Day and Mother’s Day
- Anticipated EBITDA to be broadly flat year-on-year
- Confident in laying foundations for future profit growth
Card Factory has reported a fall in profits before tax of 8.3% to £66.6m due to stagnated like-for-like sales and decreased footfall across its 972 stores. However, online sales surged by 56.3%, leading to an overall revenue increase of 3.3% to £436m for the full year ending January 31, 2019. The company opened 51 new stores and plans to explore opportunities beyond its current 1,200 UK stores and internationally. Underlying earnings per share dropped to 17.6p from 18.9p, but the total dividend per share remained at 9.3p. CEO Karen Hubbard attributed the performance to continuous improvements in customer offerings and cost savings. EBITDA was impacted by lower footfall and Getting Personal’s disappointing performance. Despite external pressures, Card Factory anticipates a broadly flat EBITDA for the upcoming year while focusing on future profit growth.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Card Factory’s financial performance, including specific numbers and details about sales, store openings, and the company’s plans for future growth. It also includes a quote from the CEO that adds context to their performance and outlook.
Noise Level: 3
Noise Justification: The article provides relevant information about Card Factory’s financial performance and its CEO’s comments on the company’s strategies and plans. It does not contain any irrelevant or misleading information, and it stays focused on the topic without diving into unrelated territories. The article also supports its claims with specific numbers and figures.
Financial Relevance: Yes
Financial Markets Impacted: Card Factory’s stock price and retail sector
Financial Rating Justification: The article discusses the financial performance of Card Factory, a UK-based retail company, including its profit before tax, revenue, and online sales growth. It also mentions plans for future store expansion and potential impact on financial markets through changes in the company’s stock price and the overall retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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