Moonpig recorded its strongest week of sales in its history in the run-up to Valentine’s Day as it benefited from online spending during the latest lockdown.
The company, which floated on the stock market this month, said it was on track to double its annual revenues as Covid restrictions drive greater demand. Revenues last year were £173m.
Consumers have flocked to the site to buy cards, and many are also choosing gifts, which has raised the average amount spent on each Moonpig order.
Moonpig’s shares jumped 17% on its stock market debut on 2 February, valuing the company at £1.4bn by the end of its first day as a listed company. The company placed 140m shares at an initial price of 350p, to give new investors a 41% stake in the company and raise £20m to fund its expansion.
The trend towards online card and gift purchases has come at the expense of established high street names including Paperchase, which has shut 27 stores and cut 270 jobs as part of a rescue deal with the private equity fund Permira.
However, in its trading update on Thursday Moonpig warned investors that it expected the frequency of customer orders, and the number with attached gifts, to “moderate” when lockdown restrictions begin to ease and shoppers are allowed back on to the high street.
The company added that its soaring revenues would be tempered by higher costs from extra staffing and Covid-19 measures.