Card Factory half-year profits slip as Brexit stockpiling hits margins

Card Factory

Card Factory has posted a decline in half-year profits despite increased sales as the retailer unveils plans to roll out its Aldi supply partnership.

The greeting cards specialist posted a 7.9% decline in underlying pre-tax profit to £22m in the six months to July 31, as revenue rose 5.5% to £195.6m.

The retailer, which posted a 14.4% fall in pre-tax profit overall to £24.3m, registered a 1.5% uplift in like-for-like sales during the period, with like-for-like store sales up 1.2%.

Card Factory’s underlying EBITDA margin slipped to 14.7% in the six months compared to 16.1% the previous year, which the business attributed to increasing stock levels “for Brexit contingency planning, investment in new lines and the acceleration of seasonal buying”, as well as National Living Wage costs and card fees associated with debit and credit card payments.

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