Business In News
Moonpig has reported its largest ever week of sales in the UK thanks to consumers scrambling for Mother’s Day cards.
The listed retailer, which allows shoppers to personalise cards and gifts, said it now expects annual revenue for the year ending 30 April to remain at £320m, despite previously warning that Royal Mail strikes haddisrupted trade for the period.
Nickyl Raithatha, chief executive of Moonpig said: “Today’s update is testament to the resilience of our business model, as demonstrated by a record UK Mother’s Day.”
“Moonpig group’s leading market positions, strong customer retention, high profitability and robust cash generation equip us to navigate all stages of the economic cycle.”
The company said that while it remains mindful of the difficult economic conditions it still expects revenues to continue growing.
The group has seen its share price fall 40 per cent since last year after it revealed it would focus on cards instead of smaller gifts such as flowers and chocolates.
Russell Pointon, director of consumer at Edison Group, said: “Despite the challenge of Royal Mail strikes and the resumption of in-person shopping in the wake of the pandemic, FY2023 has so far delivered broadly positive results for Moonpig.
“Strategic investments in technology and data and a powerful market campaign have served to bolster the brand’s profit.
Moreover, while the necessity of online shopping may have passed, the market share afforded to Moonpig during the pandemic is still reinforcing the group’s brand recognition.”
Moonpig bounces back from Royal Mail strikes to hold on to post pandemic loyalty