Card Factory PLC envisions strong online growth over the next five years

Card Factory PLC envisions strong online growth over the next five years

The retailer also said customers have been spending more since stores reopened although footfall has dropped

PLC () said it envisions a stronger weighting on online sales over the next five years.

The group set its targets for the financial year ending in 2025, including revenue of £635mln generated in equal parts between stores and online platform, with 5,600 distribution points including 1,100 its own stores.

READ: Card Factory to open around 100 stores in mid-June

It also launched a new website on July 2, with sales rocketing both during and after lockdown.

In a trading update, the firm said the number of in-store transactions and footfall have dropped but average spend surged 25% after stores reopened.

Total revenue for the six months to July 31 is expected to come in at £100mln, down from £195mln a year ago.

The lockdown hit key seasons such as Father’s Day and Easter, while there has been reduced demand for ‘Thank You Teacher’, Wedding and Children’s Party ranges.

Sales since June 15 dropped 21.6%, beating expectations of a 50% slump in the first month.

The greeting cards retailer is now operating 1,015 of its 1,018 stores across the UK, from an initial 89 stores reopened in England last month. Net debt as at July 19 was £144mln.

“This update and ambition should provide much confidence and drive the shares higher after -75% fall in the year to date,” analysts at Liberum commented.

“The shares are exceptionally cheap for such a cash-generative business.”

Shares advanced 5% to 43.75p on Tuesday morning.

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