Moonpig Sales Still Flying Despite The Extra Competition From The High Street
“Moonpig Group PLC (LON:MOON)’s flying pandemic sales haven’t yet come down to earth with a bump. Despite the lifting of restrictions and the extra competition from high street card retailers, business was still benefiting from an ongoing trend to buy cards and gifts online.
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Moonpig Increased Its Revenue Guidance For The Year
With the company still rooting out sales, it’s increased its revenue guidance for the year to around £270 million to £285 million from a previous forecast of up to £260 million. But that won’t necessarily translate to a similar uplift in profits, as hanging onto newly acquired customers is a costly business and the company has budgeted for a big marketing drive, including promotions to drive app downloads.
It knows that when more workers do return to the office, they’ll have a chance to nip out at lunchtime again to pick up presents and cards, and bricks and mortar retailers are likely to also up their game in competition. But it’s now acquired a huge data set on customer choices and preferences, which alongside its flexible delivery options, should help it stay ahead of the herd for now.”
Article by Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown
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