UK's Moonpig forecasts full-year revenue below market expectations (updated)
03/04/2025 07:40
Revenue forecast below analysts' consensus for 2025 Company plans 60 million pound share buyback Adds details of margin expectations in paragraphs 1 and 6, shares in paragraph 3, new analyst comment in paragraph 7 By Raechel Thankam Job April 3 (Reuters) - British greeting card retailer Moonpig MOONM.L on Thursday said annual revenue would lag market expectations in a tough economic environment, but said it saw its core earnings margin at the top end of forecasts. The company, which has expanded into newer markets like the U.S. and Australia, also said it expects to start a 60 million pound ($78.7 million) share buyback in its financial year 2026. Moonpig shares reversed earlier losses to trade up 3.9% by 1116 GMT. In the UK, which accounts for more than 80% of Moonpig's revenue, consumers have been reducing discretionary spending including holiday gifting amid rising living costs and an uncertain economic environment. The company now expects revenue for the 2025 financial year to be between 350 million pounds and 353 million pounds, compared with a company-compiled consensus of 355.9 million pounds. It also expects annual core earnings margin at the top end of its 25%-27% forecast. In a note, Shore Capital analysts indicated potential for Moonpig to return to high single-digit growth, citing positive sales momentum across brands. Moonpig's Greetz brand - its greeting cards and gifting brand in the Netherlands - had a softer start to the second half of the fiscal year, a crucial period for the gift retail market covering Christmas and Valentine's Day. However, investments in technology, including AI to improve online search functionalities, have led to better rates of customers buying more than they initially planned for. ($1 = 0.7638 pounds) (Reporting by Raechel Thankam Job; Editing by Mrigank Dhaniwala, Sonia Cheema and Jan Harvey) ((RaechelThankam.Job@thomsonreuters.com;))