Card Factory hails resilient first half performance despite drop in profit
Card Factory has hailed a resilient first half performance as its full year expectations remain unchanged.
In the six months to 31 July, group revenue rose 5.9% to £247.6 million with like-like store revenue growing by 1.5% against a backdrop of softer high street footfall due to this year’s hot summer weather.
However, like-for-like sales at cardfactory.co.uk fell by 11.3% as the retailer continued to evolve its offering with a focus on higher margin sales.
Adjusted pre-tax profit fell to £13.2 million from £14.5 million a year earlier, reflecting the timing of investments and actions taken to mitigate inflation.
Subscribe to TRBMeanwhile, pre-tax profit dropped by 46.4% to £7.5 million.
At the end of the period, Card Factory agreed to acquire online personalised greeting cards business Funky Pigeon from WH Smith for £24 million as part of plans to accelerate its digital strategy.
Darcy Willson-Rymer, chief executive of Card Factory, said: “Our resilient first half performance against a challenging retail backdrop demonstrates the effective execution of our growth strategy and our ability to navigate inflationary pressures.
“Our core stores business performed positively during the period, supported by new store openings, while our ongoing range development resonated strongly with customers, driving successful spring seasons.
“At the same time, we continued to advance our growth priorities, expanding partnerships and accelerating our digital strategy through the acquisition of Funky Pigeon.”
Card Factory said expectations for its second half, which includes Halloween and Christmas, are unchanged with the forecast of mid-to-high single-digit percentage growth in adjusted pre-tax profit.
Willson-Rymer added: ” Building on the success of our H1 seasonal performance, we have strong plans in place for H2 to deliver on our quality and value proposition including new Christmas ranges and a significantly expanded Halloween range.
“These plans, combined with our ongoing productivity and efficiency programme, mean our expectations for the full year remain unchanged.”
