Card Factory sales growth slows in first quarter

Revenue increased by 6.5% in the quarter ending 30 April, down from the 8% growth last year and the 7.5% rate in the same period a year ago.

Online revenue growth more than halved, decelerating to slightly above 10% from the 22.8% generated last year despite a strong start for the relaunched cardfactory.co.uk.

As indicated in April's preliminary results, the Getting Personal personalised gifts website, which has represented the majority of the group's online operations of late, will struggle to live up to its very strong prior year, which included almost 25% growth in the first half.

On the upside, the business remains highly cash generative and management continue to believe there is potential for further returns of surplus cash to shareholders, with details to be forthcoming in September's interim results statement.

Moreover, new chief Karen Hubbard, who took charge late last month after what she said was an extensive induction programme to bring her up to speed after the eight-year reign of Richard Hayes, said she continued to target full year like-for-like sales growth within the five-year historic range of 1.4% to 3.2%.

There were 20 net store openings in the period, swelling the total to 834 and in line to add 30 more in the year.

"Following our record performance last year, we have had a reasonable start to the year," Hubbard said.

"Whilst not completely immune to the weaker consumer confidence seen in 2016, the market for greetings cards in the UK has proven highly resilient in the past and our unrivalled value offer will continue to appeal to a broad range of customers. We remain confident of making further progress this year as we continue to expand our store portfolio and further improve our in store and online proposition."

Overall, she said management's expectations for the year remained unchanged.