Card Factory profits soar driven by strong store performance

In a trading update for the six months to July 2023, the specialist card retailer reported an adjusted profit before tax of £22.1m compared with the £10.8m it reported in the first half of last year.

Group revenue was ££220.8m, up 11.5% compared with last year “reflecting continued good momentum across the business, particularly in the core stores business”.

In the same period, like-for-like store sales saw a growth of 10.5% while online like-for-like sales were down 13.1% compared with the previous year. 

The retailer’s total sales from partnerships increased to £6.4m including its partnership with SA Greetings, which the retailer announced at the end of the last quarter.

Card Factory also announced it had signed new agreements with Matalan in the UK and Liwa Trading Enterprises in the Middle East.

Chief executive Darcy Willson-Rymer said: “We continue to build the key foundations for growth through the delivery of our ‘Opening Our New Future’ strategy.

“Our value and quality proposition and the strength of our store estate resonates with customers and positions us well to navigate the challenging economic backdrop in the run-up to the Christmas trading season.

“Continued leveraging of the insights gathered from our investment in customer data is enabling us to evolve and optimise our store formats and ranges across cards, gifts and celebration essentials, all underpinned by our discipline in maintaining a resilient financial position.”