Card Factory keeps annual outlook despite softer sales in first half

Card Factory PLC on Tuesday maintained its full-year outlook despite an uncertain market environment, ahead of its seasonally strongest quarter.

The cards and celebration supplies retailer reported revenue of £260.8 million for the six months ended July 31, up 5.3% from £247.6 million a year earlier. Card Factory said this reflected the contribution from the acquisition of FunkyPigeon.com Ltd, completed in August 2025, and continued growth in wholesale sales.

Pretax profit increased 64% to £12.3 million from £7.5 million a year earlier, while diluted earnings per share rose 69% to 2.7 pence from 1.6 pence.

On an adjusted basis, pretax profit fell 3.8% to £12.7 million from £13.2 million a year earlier.

The company said subdued UK consumer sentiment and soft footfall weighed on like-for-like sales growth, which fell 2.0% in UK and Ireland stores.

Despite the "uncertain" consumer environment, the company said trading since the end of the period had been encouraging, with UK store like-for-like sales improving compared with the first half.

"While it is still early in the period, this provides encouraging evidence that the actions implemented at the end of the period and beginning of the second half are gaining traction," Card Factory noted.

As a result, the company said it is confident it will deliver full-year adjusted pretax profit in line with expectations. According to company-compiled consensus, the market currently expects adjusted pretax profit of between £54.0 million and £59.0 million, with an average of £56.7 million.

"We are confident of delivering full-year expectations with strong golden quarter plans in place, supported by significant product newness and a further strengthening of our great value offer," the company said, anticipating a significant cyclical sales increase during the Halloween and Christmas period.

Card Factory said it will pay an interim dividend of 1.4 pence per share on December 11. This represents a 7.7% increase from the previous interim dividend of 1.3 pence.

Shares in the Wakefield, England-based company were up 3.9% to 75.50 pence around noon on Tuesday in London.

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