Variety store Poundland had a record Christmas trading period in 2014, with success spanning across the whole of the third quarter.
During the 13 weeks to 28 December, total growth for the company was 9.8 per cent, with revenue up at £328.4m – a 10.2 per cent increase compared to 2013.
The seasonal success came from a combination of like-for-like store sale growth and continuing strong performance from new stores.
Why it's interesting
The chain, which sells most items for just £1, floated last March at 300p per share. Initially, the company was extremely popular among investors, but shares soon settled to around two thirds of their peak value.
They had a volatile time halfway through 2014, but soon settled to a steady value with only minor fluctuations. Little was able to shift the value – in November, the company posted an 11.7 per cent increase in profits, sending shares up by 3.7 per cent to just under 314p. But they quickly went back to their normal level.
However, since December shares have been on the up again, and today's good news suggests they may well continue on that trajectory.
What Poundland said
Chief executive Jim McCarthy praised the store's record Christmas period:
I am pleased to report another good quarter of sales growth and a record Christmas trading period. Despite the tough trading conditions, Poundland continued to perform well and we served more than 7 million shoppers in the peak Christmas trading week alone.We have managed our costs and cash well, and we are in line with our financial expectations for the year as a whole. We are on track to open 60 net new stores in the UK and Ireland and we have a very strong pipeline for our 2016 financial year.