Card Factory: ‘Challenging consumer backdrop’ hits retailer as in-store revenues drop over Christmas
Wakefield-founded Card Factory has said it was hit by a “challenging consumer backdrop” as its in-store revenues fell due to lower than average footfall over the key Christmas period.
The company said it was on track to deliver adjusted pre-tax profit in line with its revised guidance of £55m to £60m for the full year, but added that store revenues had dropped 1.2 per cent in November and December compared to the same time last year.
The firm, which still holds a significant presence in Yorkshire, also saw total store sales drop 0.8 per cent in the same period.
Shares in Card Factory fell just over two per cent following the announcement.
Speaking on the results, Darcy Willson-Rymer, chief executive officer of Card Factory, said: "We are on track to deliver profits in line with our revised guidance announced on 12 December 2025.
“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.”
The news comes after December saw Card Factory revise its profit guidance from expectations of roughly £70m to the £55m to £60m figure.
The firm said at the time that its trading had been hit by “pressures facing the UK consumer”.
It added: “It is an inescapable fact that these pressures have impacted consumer confidence and shopping behaviour, contributing to soft high street footfall.”
In July, Card Factory announced that it had agreed to acquire online personalised greeting cards firm, Funky Pigeon, from retailer WH Smith for £24m.
Card Factory said that the performance of its acquired businesses, particularly in North America and the Republic of Ireland, had contributed to a lift in group revenue year-on-year.
It added that its ongoing “simplify and scale” programme had largely mitigated persistent cost inflation.
Mr Willson-Rymer said: “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.”
The company added that its board anticipates declaring a “progressive” full-year dividend, in line with its capital allocation policy.
A statement from Card Factory added: “The previously announced programme to purchase shares to satisfy future employee share schemes, has successfully concluded for FY26, at a total cost of £5m.”
Card Factory is set to announce its preliminary results on 28 April.