Revenue increased 5.3% to £260.8 million in the six months to July 31, while adjusted pre-tax profit edged lower.
Card Factory reported a 5.3% rise in half-year revenue to £260.8 million, supported by digital sales and store expansion, while adjusted pre-tax profit fell slightly. Like-for-like store sales declined overall but returned to growth in the UK in recent weeks, according to the company.
Card Factory reported a 5.3% increase in revenue to £260.8 million for the six months to July 31, despite what chief executive Darcy Willson-Rymer described as continued pressure on UK consumers.
The retailer, which operates 1,126 shops across the UK and Ireland, said adjusted pre-tax profit fell slightly to £12.7 million from £13.2 million a year earlier. Profitability remained broadly flat, it said, while improved store profitability and disciplined working capital management generated strong free cash flow.
Digital sales rose by £12.8 million, helped by Card Factory’s £24 million acquisition of Funky Pigeon from WH Smith in July. This offset a 0.7% decline in revenue from its main stores business.
Like-for-like store sales fell 2%, although the opening of 23 new stores over the past year partly offset the decline. Sales in the Republic of Ireland rose 24.3% year-on-year as the company continued its store expansion programme.
Card Factory said it had been encouraged by trading since the end of July, with UK like-for-like store sales returning to growth in recent weeks.
Willson-Rymer said the first half represented “further progress” towards becoming a broader and more diversified business across the gifting and celebrations market. He said the company remained focused on strengthening its store estate, increasing its share of the celebrations market, developing partnerships and international businesses, and integrating Funky Pigeon.
Shares in Card Factory rose 2.5% to 74.5p.
