The Wakefield-headquarted company has published its preliminary results for the year to January 31, showing a 7.4 per cent increase in revenue to £582.7m. However, adjusted profit before tax was down 15 per cent to £56m.
CEO Darcy Willson-Rymer said there had been “softer high street footfall” in the second half of the year, while the “external environment remains uncertain”. The company said it is “cognisant of the situation in the Middle East and the potential for impact on direct input costs such as container rates, energy and fuel surcharges”.
Card Factory opened a net 27 new stores last year and despite the broader economic concerns, said it intends that new store openings will “continue at a similar rate as in underpenetrated markets” this year.
The firm has also announced a £15 million share repurchase programme due to run until January 2027.
It said its £25.7m purchase of online card retailer Funky Pigeon which was completed last year will result in £5m worth of synergies from 2028.
Mr Willson-Rymer, Chief Executive Officer, said: “Despite a challenging consumer backdrop in FY26, we continued to execute our strategy to transform cardfactory into a global celebrations group, underpinned by targeted investment and disciplined cost management.
“We are encouraged by the positive contributions of our acquired businesses, with the acquisition of Funky Pigeon accelerating our digital capabilities and strengthening our platform for future online growth.
“Softer high street footfall in the second half, particularly during our peak trading period, impacted full-year performance, with Adjusted PBT being delivered in line with our revised guidance.
“The group remains highly cash generative, and our ‘Simplify & Scale’ efficiency and productivity programme will continue to help mitigate inflationary headwinds.
“We remain committed to disciplined capital allocation and progressive shareholder returns, which is reflected in the proposed final dividend and a commitment to commence a £15 million share buyback programme.
“Looking ahead, as widely documented, the external environment remains uncertain. We have robust plans in place for FY27 to deliver further progress against our strategic priorities and medium-term ambitions.
“By remaining focused on developing our strong value and quality offer, we will continue to help our customers celebrate life’s moments.”
Julie Palmer, managing partner at financial and real estate advisory group BTG, said: “The Christmas period and Valentine’s Day may not have delivered the gift Card Factory was hoping for in its last financial year, and it may not be feeling like celebrating as it looks forward to the year ahead.
“However, against backdrop of rising employment costs alongside current energy and inflation shocks, it has maintained progress with new stores and investment in business efficiencies which are difficult to achieve in this market.
“The outlook for 2026 continues to point towards more increasing costs and less discretionary spending, which for non-food retailers like Card Factory will not have been on their wishlist this year. With supermarkets continuing take share of the greetings card and convenience gifts market, Card Factory will be needing to increase sales volume and focus on higher margin sales to come up against them.”
