Card Factory reaffirms outlook despite 'uncertain' consumer backdrop

(Sharecast News) - Card Factory said on Tuesday it remained on track to meet full-year targets, despite a dip in first-half sales and poor consumer sentiment.

The cards and gifts retailer - which also owns Funky Pigeon - saw revenues rise 5.3% to £260.8m in the six months to 31 July, while adjusted earnings before interest, tax, depreciation and amortisation ticked up 2% at £45.1m.

Adjusted pre-tax profits fell nearly 4%, however, to £12.7m, after the company ramped up investment in its digital and international businesses. Like-for-like sales were also lower, by 2%, on the back of weakened UK consumer sentiment, Card Factory noted.

However, despite the ongoing "uncertain" consumer backdrop, the company insisted it remained on track to meet full-year guidance. It noted that like-for-like sales had improved since the period end, and said actions implemented in the first half - including introducing new ranges and optimising stores - were now "gaining traction".

Coupled with "strong" plans for the critical last three months of the year - retail's so-called golden quarter - Card Factory said it remained on track to meet expectations for full-year adjusted pre-tax profits of around £56.7m.

As at 0830 BST, shares in Card Factory had put on 2% at 74.5p.

Darcy Willson-Rymer, chief executive, said: "We made further progress in the first half towards building a broader, more diversified celebrations business.

"We remain focused on strengthening our store estate and increasing our share of the celebrations market. We are confident of delivering full-year expectations with strong golden quarter plans in place, supported by significant product newness and a further strengthening of our great value offer."

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