Card Factory hails 'good start to year' as LFL sales grow

Card Factory hailed "a good start to the year" on Thursday, as it said first-quarter like-for-like store sales were at the upper end of its targeted range of 1% to 3% growth.

Underlying group sales growth in the quarter to the end of April was 6.1% after normalising for the impact of last year's leap year. Including the impact of the extra day's trading a year ago, total reported sales growth came in at 4.9%, down from 6.5% in the first quarter of 2016.

The company opened 11 net new stores in the quarter, bringing the total estate to 876 stores as at 30 April and it remains on track to deliver around 50 new stores in the current financial year. In addition, the trial entry into the market in the Republic of Ireland is progressing well and Card Factory expects to open a small number of trial stores later this year.

As at 30 April, net debt was down £10.4m from the end of January to £125.4m.

Chief executive officer Karen Hubbard said: "We have had a good start to the year with like-for-like store sales at the upper end of our targeted range. Our store opening programme remains on track and we are pleased with the performance of this year's openings, including strong initial sales from the increased proportion of openings in retail parks.

"Overall, Card Factory remains in a really strong position with a significant number of additional opportunities to further improve the business in the months and years ahead. The board's expectations for the full financial year remain unchanged and I look forward to providing further updates as the year progresses."