They had a strong trading update today
Card Factory make amount of money selling absurdly cheap products. Some of its cards go for 29p. Card Factory makes nearly all of its own cards. With no middleman taking their cut – and ramping up the prices – Card Factory can sell its stuff for a fraction of the price of competitors.
Full year pre-tax profits at greeting card maker Card Factory almost doubled to £83.7m driven by strong sales and new store openings.
Revenues were up 8% to £381.6m, with sales at the Getting Personal online unit up 7.5%.
Underlying earnings per share rose 17.2% to 19.1p and shareholders will be rewarded with a final dividend of 6p a share, up from 4.5p.
Analysts expect its opening about 50 stores a year, which has taken it to 800 locations across Britain. Its goal is to get to 1,200p so they expect a 45% rise
I guess never underestimate people's desire to spend their money on tat.
My question would be, how sustainable is it? Most young people I know just send a facebook message rather than buying a card. It tends to be something for older generations.
Will this hurt them in the long term?