Moonpig enjoys Valentine’s Day boost

Moonpig

Moonpig recorded its ‘strongest ever week’ in the lead up to Valentine’s Day, as it continues to benefit from more consumers shopping for cards and gifts online.

According to its latest trading update, the group now expects to double the £173 million it earned in revenue last year.

The ‘significant’ increases in demand that it had enjoyed in the first half of the year had carried through to the third quarter. While an ‘unusually elevated’ number of purchases and what it called a ‘temporary’ rise in average order values – whereby more customers had opted to add gifts to their orders – had also helped sales.

Lockdown easing is likely to have an impact, it says, moderating the “higher levels of customer purchase frequency and elevated gift attach rates”.

More orders has meant more investment to deliver them. Plus, the company says its also increased its marketing activity to gain more new customers.

It said: “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 added that its guidance for the next financial year, ending 30 April 2022, remained broadly unchanged.

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