In its first trading up since its £1.2bn flotation at the beginning of the month, the online cards and gifting giant said that the increase in demand it experienced in H1 had continued into Q3.
“Last week we saw the strongest-ever trading week in the group’s history ahead of Valentine’s Day,” Moonpig stated.
“Purchase frequency remains unusually elevated due to Covid-19 related restrictions, and we are now also seeing a temporary increase in average order values, as more customers attach gifts to their orders.”
Sales for the full year are expected to be “approximately double” the prior year’s figure of £173m, with similar underlying profit margins.
However, the group’s operations have been impacted by strict lockdown measures in Guernsey, which came into force on 23 January and could be partially lifted today (18 February), although this had not been confirmed at the time of writing.
A Moonpig spokesperson told Printweek that it was only allowed a maximum of two people at its Guernsey print site at present because of the restrictions, which had reduced its card production capacity.
“Our first and foremost priority is the health and safety of our employees and customers, so throughout the pandemic we’ve been following the State of Guernsey government guidance closely, taking every precaution and care that we can as a company to protect our teams and communities while working really hard to deliver for our customers.”
Following the crucial Valentine’s Day peak period unhappy customers took to social media to complain about dead or poor quality flowers, missing cards, and card mix-ups.
One of the complainants was Eight Days a Week Print Solutions managing director Lance Hill, who was among numerous customers to complain that the roses supplied had died within a day.
@MoonpigUK please respond to my email, your £28 flowers are dead 24 hours after delivery. @LidlGB £3 ones are still@going strong! pic.twitter.com/LqeT5xzgUY
— Lance Hill (@lancehill1973) February 16, 2021
Moonpig responded: “While the issues affected a small number of the overall volume of orders, we take every single complaint seriously and work as quickly as possible to put things right. We engaged directly with these customers, as we know that these orders and the loved ones they are destined for are extremely important.”
Moonpig’s share price fell sharply yesterday, from a 52-week high of 456.2p to 434.4p, but had risen to 444p in early trading today.
