Card Factory performance impacted by slow high street footfall

The greetings card retailer saw revenue increase 7.4% to £582.7m for the year to January 31, 2026, while adjusted profit before tax fell 15.2% to £56m.

Card Factory reported that softer high street footfall and a sharp drop in footfall during the Christmas period impacted its performance, which was in line with its revised guidance.

The drop also weakened its like-for-like sales, flat at 0.2%, and transactions were down 3.7% during the period, but this was offset by the average basket value increasing by 3.5%.

Funky Pigeon, which Card Factory bought from WHSmith in August last year, has made it the second-largest online card retailer, and the digital business contributed £13.5m to revenue since its acquisition.

Card Factory told markets that the first three months of FY27 were in line with the same period last year and it anticipated growth across all channels to continue year on year. However, it warned that conflict in the Middle East could impact container rates, energy and fuel surcharges. 

The retailer expects profit margins to remain “broadly consistent” with FY26, and profits to be “in line with the current market consensus”.

Card Factory chief executive Darcy Willson-Rymer said: “Despite a challenging consumer backdrop in FY26, we continued to execute our strategy to transform Card Factory 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 £15m 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.”