// Moonpig reports that its overall trading performance from May was been in line with expectations
// The business said that it has prioritised greeting card sales, which have a demonstrable track record of being resilient and will continue to do so
Online greeting card and gifting retailer Moonpig reiterated its full-year guidance and said its overall trading performance from May was been in line with expectations.
The company explained that in the current economic environment, it has prioritised card sales, which have a “demonstrable track record” of resilience and said that it intends to continue this focus for the remainder of the financial year.
Moonpig said average order values in the period have risen year-on-year, supported in particular by cards and margins have remained “resilient in the absence of any significant pressure from input cost inflation”.
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As previously indicated, the retailer is anticipating to return to pre-Covid seasonality and expects between 58% and 60% of revenue to arise in the second half of the financial year.
“This seasonality is supported by a planned increase in the concentration of resources around our peak trading periods and by the expected impact of software engineers becoming available for the development of new revenue-generating functionality following the successful migration of Greetz onto the Moonpig technology platform in September 2022,” it said.
Moonpig chief executive Nickyl Raithatha said: “Moonpig Group’s trading remains resilient and we are confident that full year revenue will be approximately double the level achieved three years ago. The group continues to offer a powerful and unique combination of leading market positions, strong customer retention, high profit margins and robust cash generation.
“Against the current macroeconomic backdrop, our continued performance reflects the strength of our data-led business model and the long-term opportunities in our markets. Following the acquisition of the experiences division and the successful migration of Greetz onto our central technology platform, we look to the future with confidence as we execute on our strategy to capture the secular shift in our markets from offline to online.”