Card Factory to meet FY profit expectations despite challenging backdrop

(Sharecast News) - Greeting cards and gifts retailer Card Factory said on Wednesday that it was on track to deliver profits in line with revised guidance despite a "challenging" consumer backdrop and a fall in sales over the Christmas period. In an update for the 11 months to the end of December 2025, the company said total group revenue rose 7.3% on the year to £541.6m, supported by positive contributions from acquired businesses. Total stores sales were up 1.1%, while LFL store sales were flat.

Card Factory said trading across November and December was in line with its revised expectations, "reflecting the challenging UK consumer backdrop and lower footfall across UK shopping destinations".

Total group revenue grew 4.3% compared to the same period a year earlier, but total store sales were down 0.8% and LFL store revenue was 1.2% lower.

The company, which issued a profit warning in December, said it expects to deliver its revised guidance of FY26 adjusted pre-tax profit of between £55m and £60m.

Chief executive Darcy Willson-Rymer said: "During the second half of the year and particularly the important Christmas period, trading in our UK stores reflected the challenging consumer backdrop which contributed to soft high street footfall. Across the group, we are encouraged by the performance of our international businesses and that the integration of Funky Pigeon remains on track.

"While the outlook for the UK high street remains uncertain, we continue to focus on our value-led proposition to help our customers celebrate all life's moments. In addition, we continue to successfully drive efficiencies and manage costs through our 'Simplify and Scale' programme. The board remains confident in the group's prospects and continued momentum of our growth strategy."