It looks like your browser is not up to date.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Moonpig experiences 'significant increase' in demand amid Covid-19 pandemic

Thu 18 February 2021 08:01 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Online greeting cards retailer Moonpig said on Thursday that the "significant increase" in demand seen in the first half of the year had continued through the third quarter.

Moonpig said that last week was "the strongest ever trading week" in its history, thanks to Valentine's Day, with purchase frequency remaining "unusually elevated" due to Covid-19 related restrictions and average order values seeing a temporary increase, as more customers attach gifts to their orders.

The London-listed firm highlighted that it now expects revenue for the financial year ending 30 April to be approximately double the £173.0m recorded in the prior year.

"We have continued to invest to deliver these higher levels of customer orders," said Moonpig, which noted it had further increased marketing activity to accelerate customer acquisition.

"On top of higher marketing spend, we have incurred incremental costs and capital expenditure due to higher temporary staffing levels throughout our supply chain, and also by the partial shifting of our production mix to the UK following the Guernsey lockdown."

Moonpig now expects underlying earnings margins for the 2021 trading year to be in line with prior year comparatives, while guidance for 2022 was "broadly unchanged".

As of 0840 GMT, Moonpig shares were up 1.78% at 442.12p.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More company news from ShareCast