Online Sales Surge as High Street Struggles

  • Underlying profit before tax fell 11.8% to £67.2m
  • Like-for-like sales down 0.5% due to weak consumer confidence and reduced high street footfall
  • Record sales for Valentine’s and Mother’s Day for the third consecutive year
  • Cardfactory.co.uk sales increased by 14.8% before lockdown
  • Online trading at cardfactory.co.uk saw a 302% increase in like-for-like sales since lockdown
  • Gettingpersonal.co.uk experienced a 68% rise in like-for-like sales and a 27% year-to-date increase
  • No dividend paid for full-year to protect balance sheet amid pandemic, no expected dividends for full-year 2021
  • Planning to open 10% of stores around 15 June with Covid-Secure measures in place
  • CEO Karen Hubbard confident in customer proposition for all shopping methods
  • Uncertainty prevents future performance guidance

Card Factory has reported a decline in profits before tax of 11.8% to £67.2m for the year ended January 31, 2020, with like-for-like sales down 0.5%. The drop is attributed to weak consumer confidence and reduced high street footfall in the second half of the year. Despite this, the company achieved record sales for Valentine’s Day and Mother’s Day for the third consecutive year, and cardfactory.co.uk sales increased by 14.8% before lockdown. Online trading at cardfactory.co.uk saw a massive 302% increase in like-for-like sales since lockdown began, while year-to-date sales soared 153%. Gettingpersonal.co.uk also experienced a strong surge of 68% in like-for-like sales and a 27% rise. Due to the pandemic’s impact on trading this year, Card Factory will not provide financial guidance for FY21 and did not pay a final dividend. The retailer plans to open 10% of its stores around June 15th while maintaining Covid-Secure measures. CEO Karen Hubbard remains confident in the customer proposition for all shopping methods but cannot offer future performance guidance due to uncertainty.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Card Factory’s financial performance, including specific sales figures and the impact of COVID-19 on their business. It also includes quotes from the CEO that offer insight into the company’s strategy for adapting to the current situation.
Noise Level: 3
Noise Justification: The article provides relevant information about Card Factory’s financial performance and its response to the pandemic, including online sales growth and plans for reopening stores. It also includes a statement from the CEO. However, it could benefit from more analysis or context on the broader implications of these trends in the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: Card Factory’s stock price and other retail stocks may be impacted by its financial performance and plans for reopening stores.
Financial Rating Justification: The article discusses Card Factory’s financial performance, including a decline in profit before tax and changes in sales due to the pandemic. It also mentions the company’s decision not to pay dividends and its plans for reopening stores, which could affect the stock price of the company and other retailers.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses the impact of the Covid-19 pandemic on the company’s performance and operations.

Reported publicly: www.retailsector.co.uk