Shares of Wakefield-based greeting cards retailer Card Factory fell about 10% after it said it expects underlying earnings for the year to be between £89 millon and £91 million, lower than analysts’ expectations of £93.5 million.
In a trading update for the six months ended July 31, 2018, Card Factory said: “Due to the weather impact and continuing uncertainty around the UK consumer environment, the board expects underlying FY19 EBITDA within the range of £89m – £91m, dependent on the key Q4 trading period.”
Card Factory CEO Karen Hubbard said: “We continue to experience a weak consumer environment, made all the more challenging by the impact of this year’s extreme weather conditions on high street footfall.
“The performance of our seasonal ranges has been strong, with our best ever Father’s Day in terms of volume and value, although we recognise there has to be more focus on our Everyday ranges, which have lagged the seasonal performance.
“Taking into account the above, the board’s current expectation is that EBITDA for the year will be in the range of £89m to £91m.
“Our key Q4 trading period will of course be critical in determining the final result for the year, but we believe we are well positioned to deliver a good performance in our important Christmas trading season.”