Card Factory Holiday Sales
Card Factory Reports Rising Revenue and Flat Profits Ahead of Christmas Trading
Anonymous
Card Factory said it remains on track to meet full-year profit expectations, with UK store sales returning to growth in recent weeks ahead of the key Christmas trading period. Revenue rose 5.3% to £260.8 million in the six months to July 31, largely reflecting Funky Pigeon and wholesale growth, while adjusted pre-tax profit was broadly flat at £12.7 million as stronger store margins were offset by investment in digital and international operations. UK like-for-like sales fell 2% amid weak consumer confidence and reduced footfall, but sales grew in Ireland and wholesale, and a new party range boosted that category. The retailer also generated positive first-half free cash flow, raised its interim dividend, and said its Golden Quarter plans include new products and sharper pricing.
Key Points
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UK store footfall fell about 3.5% during the half, although shoppers who visited spent around 3.6% more per basket.
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Statutory pre-tax profit rose to £12.3 million from £7.5 million, with currency gains helping; another report attributed the sharp increase on a statutory basis to one-off costs falling away.
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Card Factory said it had advanced a £15 million share buyback and was continuing to optimise its store estate.
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The company said Funky Pigeon’s integration was progressing, with digital sales and customer numbers rising, and cited its ‘Simplify & Scale’ efficiency programme as part of its plans to expand in the celebrations market.
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