Card Factory shares up 15% as it lifts profit guidance

Wakefield-based greeting card and gift retailer Card Factory increased its annual profit guidance on a better-than-expected second half so far, helping to send its shares up about 15%.

In an update to its trading expectations for the current financial year to January 31, 2023, Card Factory said like-for-like sales are up 6.2% in the year-to-date, driven by “strong” in-store performances.

Card Factory said both its online business and commercial partnerships have performed in line with expectations.

Card Factory now expects pretax profits of £37.5 million for the year ending January 31, from £11.1 million in 2022.

Earnings before interest, taxes, depreciation, and amortisation are expected to hit £96 million, beating current consensus of £88.8 million.

“Trading in the second half to date has been stronger than expected, particularly across our everyday ranges …” said Card Factory.

Christmas is a peak trading period for the business; we have been encouraged by the start to this season with sales marginally ahead of expectations.

“All internationally sourced seasonal stocks have been landed in the UK, with a significant proportion already delivered to store.”

 

Reporter: Jaskeet Briah

Copyright 2022 Alliance News Limited. All Rights Reserved.