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CARD - Card Factory News Story

35.5p 1.0  2.9%

Last Trade - 23/10/20

Sector
Consumer Cyclicals
Size
Small Cap
Market Cap £117.9m
Enterprise Value £406.6m
Revenue £356.4m
Position in Universe 901st / 1806

UPDATE 1-Card Factory sets 2025 targets, sales fall less than expected as lockdowns ease

Tue 28th July, 2020 9:58am
(Adds details on outlook, targets, analyst comment)
    July 28 (Reuters) - UK's Card Factory  CARDC.L  on Tuesday
laid out targets for financial year 2025 and said sales at its
stores dropped less than expected since reopening due to easing
lockdown restrictions and higher average spend, sending its
shares up as much as 12%.    
    The strategy update from the card retailer, which comes soon
after top boss Karen Hubbard stepped down after being at the
helm for four years, includes a revenue target of around 635
million pounds ($815.40 million) for 2025 and an underlying
pretax profit of about 105 million pounds.    
    "Ambitious targets and we are excited to hear more about the
capital light model the group is targeting with c.5,600
distribution points (UK and International), of which c.1,100
will be group operated stores," Liberum analysts said.
    The Wakefield-based firm, which has been grappling with
online competition and higher costs of maintaining
brick-and-mortar stores, expects first-half revenue for
financial year 2021 to be about 100 million pounds, ahead of
Liberum's estimates.  
    The company said like-for-like in-store sales since
reopening were down 21.6%, compared to an expected 50% reduction
in the first month of reopening.        
    Like-for-like online sales at both cardfactory.co.uk and
gettingpersonal.co.uk were up 68.9% for the current financial
year to July 19 compared with a year earlier, the company said. 
    It was too soon to determine whether initial performance
reflects the release of pent-up demand following the lockdown or
the point at which consumer footfall and sales will settle to a
sustainable level, the company added.
    Shares in Card Factory were up 7.7% at 44.5 pence by 0843
GMT.
    
       
($1 = 0.7788 pounds)

 (Reporting by Tanishaa Nadkar in Bengaluru;
Editing by Vinay Dwivedi)
 ((tanishaa.nadkar@thomsonreuters.com; +919730172534; Twitter -
@TanishaaNadkar;))
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