Cardfactory warns on profit amid weak consumer confidence
Cardfactory has warned on profit after trading was impacted by weaker consumer confidence and softer footfall.
In a trading update, the greeting cards retail group said the pressures facing the UK consumer have been well publicised in recent months.
It added: “It is an inescapable fact that these pressures have impacted consumer confidence and shopping behaviour, contributing to soft high street footfall.
“Those conditions have persisted as we moved into our most important trading period, leading to a UK store sales performance which is lower than our previous expectations.”
Assuming that current trading trends persist over the remaining seven weeks of its financial year, Cardfactory said it now expects to post a full year adjusted pre-tax profit of between £55 million and £60 million.
In September, Cardfactory reported that its adjusted pre-tax profit fell to £13.2 million in the six months to 31 July from £14.5 million a year earlier.
In the statement today, the group said its has continued to make progress with its long-term strategy and the execution of its ‘Simplify and Scale’ productivity and efficiency programme. Performance at its other businesses, including those in the Republic of Ireland and North America, remains in line with expectations.
Cardfactory said: “The board remains confident in the group’s long-term strategy. The share buyback programme will continue and the Board anticipates declaring a progressive full-year dividend, in line with its capital allocation policy.”
