(Alliance News) - Card Factory PLC on Tuesday posted interim earnings growth and said it is confident of meeting expectations for the full-year, despite grappling with a "challenging economic backdrop" in the run-up to the key Christmas period.
Shares in the company were 6.5% lower at 104.00 pence each in London on Tuesday morning.
The greeting cards and gifting firm said revenue in the six months to July 31 grew 12% to GBP220.8 million from GBP198.0 million a year prior. Pretax profit surged 73% to GBP24.7 million from GBP14.3 million.
"We are delighted to announce a strong performance in the first six months of this year," Chief Executive Officer Darcy Willson-Rymer said.
"Our value and quality proposition and the strength of our store estate resonates with customers and positions us well to navigate the challenging economic backdrop in the run up to the Christmas trading season. Continued leveraging of the insights gathered from our investment in customer data is enabling us to evolve and optimise our store formats and ranges across cards, gifts and celebration essentials, all underpinned by our discipline in maintaining a resilient financial position."
Card Factory said it is "confident in delivering a good outturn for the year". Trading since early-August has been in line with expectations, it added.
Looking ahead to the festive period, Card Factory said: "We are well prepared for our key Christmas trading season. Our Christmas programme has now launched and includes our first fully integrated marketing campaign. New products include an expanded gift offer to provide customers with new and exciting ranges in areas such as toys, food and confectionery, and own label. As part of the space realignment project, we have continued to optimise space to ensure the correct balance between Christmas card, Christmas gifting and Christmas celebration essentials.
"From a supply perspective, all stock has been manufactured in line with the required delivery dates and there have been no issues with inbound logistics for any stock manufactured overseas. Recruitment of seasonal colleagues for the Christmas season has commenced and we are confident in our ability to not only meet staffing requirements for this seasonal peak but to also provide customers with an enhanced experience."
By Eric Cunha, Alliance News news editor
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Card Factory (CARD)