REG - Card Factory PLC - Trading Statement

Card FactoryAnnouncement

08/11/2021 07:05

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RNS Number : 5739R  Card Factory PLC  08 November 2021

8 November 2021

 

Card Factory plc

 Trading Update

 

Card Factory plc ("Card Factory" or "the Company" or, together with its
subsidiaries the "Group"), the UK's leading specialist retailer of greeting
cards and complementary products, today provides an update on the Group's
trading and operations.

Further to the trading update in September alongside our interim results,
sales performance has continued to recover, with two-year like-for-like sales
(LFL) (i.e. compared to the equivalent quarter to 31 October 2019, pre-Covid)
showing gradual improvement.  Two-year store LFL was -3.0% for the quarter to
31 October 2021.  Average basket value over this quarter continued to exceed
pre-pandemic levels (+22.5% on a two-year LFL basis), offsetting the lower
transaction numbers (-20.9% on a two-year LFL basis).

Online is trading in line with our expectations, with the stronger performance
of Getting Personal offsetting a reduction in sales from cardfactory.co.uk.
Both brands continue to perform ahead of pre-pandemic levels.

Customers are responding well to our Christmas ranges, which are selling well
at this early stage of the season, leading to the accelerated introduction of
the third phase of Christmas cards and complementary products into
approximately 350 stores.  A relatively small proportion of products sourced
from the Far East is subject to the widely reported supply chain delays, but
we believe our contingency planning will ensure any delays to store deliveries
are minimised and short lived.  Recruitment of seasonal store staff has
started strongly.

Net debt, which is typically at its annual high due to stock purchase in
advance of the Christmas season, as at 31 October 2021 was £108.4 million
(excluding £20.8 million of deferred rents and VAT), compared to net debt of
£142.5 million (excluding £13.2 million of deferred rents and VAT) on 31
October 2020.

Darcy Willson-Rymer, CEO, commented:

"We continue to see improved performance of the business as customers steadily
return to shopping in stores.  This gives us confidence as we engage to
realise the refreshed strategy and build our omnichannel offering.

We look forward to the future and the continued implementation of our
strategy.  We are confident that the Group is well placed to take advantage
of the growth opportunities available to it."

 Enquiries:
 Card Factory Plc                                                                                               Tel: 01924 839150
 Darcy Willson-Rymer, Chief Executive Officer
 Kristian Lee, Chief Financial Officer
 Tulchan                                                                                                        Tel: +44 (0) 207 353 4200
 Communications

 James Macey White / Victoria Boxall / Elizabeth Snow

 

 

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