Card Factory: our final Bonkers Bargain of 2020 (Updated)
Card Factory had a tough close to a pretty awful 2020 and, as anticipated, the year end lockdown meant that banking covenants were breached. However, as we thought, the share price reflected the most pessimistic of outlooks and has performed strongly in 2021, but still has a long way back to previous highs. With debt facilities now refinanced and customers returning to its shops we anticipate further progress.
Greetings cards and gifts retailer, Card Factory (LON:CARD), a previous constituent of our Income Boosters portfolio, clearly faces a challenging short-term outlook. Its stores were closed for a lot of 2020, and reduced footfall across the UK’s high streets following further lockdowns resulted in a disappointing sales performance over the key Christmas trading period. Despite the financial pressures this could bring, the company appears to have a sound long-term recovery strategy. It is expanding its online presence, increasing partnership sales, cutting costs and adapting its price points to maximise margins. With queues seen outside many of its stores in the run up to…