Card Factory maintains its full-year profit outlook after a strong Christmas

Card Factory has overcome general retail pessimism following a disappointing ‘golden quarter’ after posting an impressive holiday trading season.

The Wakefield-based retailer saw turnover rise by 4.7 per cent in November and December, with store revenues up 3 per cent on a like-for-like basis.

The company’s sales outperformed the broader non-food retail market during the period, as well as in the 11 months to December, when revenue grew 6.2 per cent to £506.6 million.

Card Factory attributed the result to expanding product ranges such as sweets and soft toys, which drove higher average basket values, as well as purchases of gifts and celebration essentials.

Following the performance, Card Factory continues to expect its full-year adjusted profits before tax to be within market estimates of £65.7m to £67m.

Comparable online orders plunged 10 percent as the company prioritized higher-margin product ranges.

However, store revenue increased 5.7 percent thanks to the opening of 32 new outlets and strong demand for cards and gifts.

Additionally, partnership sales increased 23.5 per cent to £18.9 million thanks to the acquisition of Irish greeting card seller Garlanna and entry into the United States with the acquisition of gifts and celebrations wholesaler Garven.

“We are delighted to have achieved another successful Christmas trading period,” said Darcy Willson-Rymer, CEO of Card Factory.

He added: “Continued revenue growth, combined with the benefits of our productivity and efficiency program, has allowed us to navigate a challenging retail environment and deliver strong performance.”

Card Factory warned around £14 million in additional costs over FY2026 due to recent Budget announcements, including the National Living Wage, which will rise by 6.7 per cent to £12.21 per hour.

At the same time, employers’ National Insurance contributions will increase to 15 per cent on staff salaries over £5,000, compared to the current levy of 13.8 per cent on salaries over £9,100.

However, Card Factory still expects to achieve a “mid-to-high” single-digit percentage increase in adjusted pre-tax earnings next year.

Russ Mould, chief investment officer at AJ Bell, said the company’s trading update would “calm some nerves about whether cash-strapped consumers would stop sending Christmas cards given the high cost of a stamp these days”.

He added: “Card Factory’s low prices mean shoppers often walk away with much more than they originally intended to buy, carrying items as they walk down the aisles.”

Card Factory Stock They rose 3.4 per cent to 93.8p on Tuesday afternoon, although they have still fallen by more than a third over the past year.