Card Factory returned to profit in the last financial year, performing ahead of management expectations.

Profits for the year to January 31 reached £11.1 million, compared with a £16.4 million loss the previous year, as reported by Retail Gazette.

The retailer, which has stores in Cheltenham, Gloucester, Stroud, Cirencester and Tewkesbury, said it had seen a recovery in store performance since lockdown restrictions. Overall, sales were up 28 per cent on the previous year to £364.4 million.

Stores sales increased 33 per cent year on year, reflecting a 20 per cent increase in the number of trading days, after lockdown shop closures during 2020-21.

Like-for-like sales were 3.1 per cent down on pre-pandemic levels, while online sales fell 1.5 per cent on a like-for-like basis, although were significantly higher than pre-pandemic levels. Card Factory said the rise in online sales reflected both the shift towards more online shopping and its expanded product range and improved customer experience online.

The retailer said it expects sales to get close to pre-pandemic levels during the current financial year. It is aiming for profits in excess of £600 million by 2026.