Shares of Wakefield-based greeting card and gift retailer Card Factory rose about 5% on Tuesday after it said trading was ahead of expectations as it announced a profit upgrade alongside an update for the 11 months ended December 31, 2022.

Card Factory said sales for the 11 months were £432.6 million, increasing 28% from £337.3 million a year ago.

The company said the sales increase reflected continued good momentum and a shift in customer spending back towards the high street, with like-for-like store revenue increasing by 7.1%.

Card Factory reported strong Christmas trading, with an increase in both store transactions and average basket value. The company said the improvements were supported by “compelling value for money” and range development.

Card Factory added that forward ordering and delivery of Christmas ranges also enabled strong availability in stores over the Christmas period.

However, the return of customers to the high street, as well as Royal Mail strikes, caused online sales to drop by 28% from a year ago, with online sales slightly up on pre-pandemic levels, the company noted.

Given current momentum, the company said it expects earnings before interest, taxes, depreciation and amortisation for the 12 months ending January 31 to be at least £106 million, above the current market consensus of £96.9 million.

CEO Darcy Willson-Rymer said: “We’re pleased and encouraged by the continued strong performance of the business.

“With delivery of our growth strategy progressing well, it is great to see some of the benefits from this work starting to come through in our financial performance.”

Reporter: Harvey Dorset, Alliance News reporter

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