Card Factory looks ahead to festive season after first half profits slump

For the six months ending July 31 2025, Card Factory reported a 46.4% slump in profit before tax to £7.5m and a 13.7% dip in EBITDA to £39.1m. Adjusted EBITDA dropped 2.4% to £44.2m, while adjusted PBT slipped 9% to £13.2m.

Total revenues for the half jumped 5.9% to £247.6m and cash from operations ballooned 74.3% to £30.5m.

Store revenues grew 2.9% during the period, which included the contribution of 30 net new stores, while like-for-like revenues grew 1.5% “in line with the non-food retail sector” and against what Card Factory called “softer summer high street footfall”.

Outside of the period, Card Factory completed the acquisition of Funky Pigeon, which it said will “accelerate our existing digital strategy, providing a platform for online growth, particularly in the direct-to-recipient card and attached gifting market”.

Card Factory said it expects to see the acquisition enhancing earnings for the financial year ending January 31 2027, with work already underway to “unlock annual synergy benefits of more than £5m”.

In terms of outlook, Card Factory said it was of a strong second half “despite the challenging consumer environment” and that its H2 expectations remain unchanged.

The retailer said it expects mid-to-high single-digit percentage growth in Adjusted PBT for the second half.

Card Factory chief executive Darcy Willson-Rymer said: “Our resilient first half performance against a challenging retail backdrop demonstrates the effective execution of our growth strategy and our ability to navigate inflationary pressures.

“Our core stores business performed positively during the period, supported by new store openings, while our ongoing range development resonated strongly with customers, driving successful spring seasons. At the same time, we continued to advance our growth priorities, expanding partnerships and accelerating our digital strategy through the acquisition of Funky Pigeon.

“With the peak festive season ahead, we are well prepared for our most important trading period. Building on the success of our H1 seasonal performance, we have strong plans in place for H2 to deliver on our quality and value proposition including new Christmas ranges and a significantly expanded Halloween range. These plans, combined with our ongoing productivity and efficiency programme, mean our expectations for the full year remain unchanged.”