Card Factory shares drop as update disappoints
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High street retailer Card Factory (LON:CARD) has reported year to date revenue growth of 3.4% for the 11 months ended 31st December, down from 5.9% in the same period of last year. The company said EBITDA expectations were unchanged at £89-91 million and warned that EBITDA for FY2020 will be broadly similar.
CEO Karen Hubbard commented: “The Christmas trading period was challenging due to lower high street footfall. However, Card Factory performed robustly in this competitive trading period. As a result, like-for-like store sales have remained consistent and in line with our quarter three update in November.
“Although the Group has faced significant cost pressures in the year, these have reduced and we have been able to take mitigating action to maintain robust gross margins.
“Whilst we expect ongoing challenges from the consumer and macro backdrop, we continue to lead the market with our proposition, underpinned by our ongoing investment in our unique vertically integrated model which provides our business with significant competitive advantages.”
The price of shares in Card Factory dropped by 12.64% to 170p (as of 12:45 GMT).
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