Clinton Cards fails to find Christmas cheer

Greetings card retailer Clinton Cards today warned on profits after its "most challenging" Christmas in years.

The Loughton, Essex-based company said that while sales volumes were higher than in 2004, customers were purchasing lower priced goods resulting in like-for-like-sales in the Clinton brand falling 2.4% in the five weeks to Christmas Eve.

The Birthdays gift and card business, which the company acquired in 2004, was proving harder to integrate than anticipated because of supply problems, it added.

While the new addition achieved a 4.5% rise in like-for-like sales over the festive period, Clinton said its performance was below expectations.

In light of the lower than predicted revenues, the company said pre-tax profits for the year to January 29 would "fall short of expectations" for £11m (€16m) and were likely to be between £6m (€8.7m) million and £8m (€11.6m).

Clinton Cards shares fell 9% following the update.