Card Factory Remains Confident in Long-Term Strategy, Shares Open Higher

Card Factory (LON: CARD) released a trading update for the eleven months ending December 31, 2025, indicating performance is in line with revised expectations.

Despite headwinds in the UK retail sector, the company expresses confidence in its long-term prospects, citing progress in strategic initiatives and the performance of its international businesses.

Card Factory shares opened Wednesday's session higher at 72p before pulling back, now trading flat.

Total Group revenue for the period reached £541.6 million, a 7.3% increase year-on-year. However, total store sales saw a modest increase of 1.1%, with like-for-like (LFL) store revenue remaining flat. Christmas trading reflected the broader challenges, with total store sales down 0.8% and LFL store revenue declining by 1.2% compared to the previous year.

The company's ability to maintain performance amidst a difficult environment is partly attributed to its ‘Simplify and Scale' program, which has mitigated persistent cost inflation. Additionally, contributions from acquired businesses, particularly in North America and the Republic of Ireland, and the integration of Funky Pigeon, have bolstered Group revenue.

Card Factory anticipates delivering adjusted Profit Before Tax (excluding one-off and non-trading items) for FY26 between £55 million and £60 million. The Board also intends to declare a progressive full-year dividend, aligning with the Group's capital allocation policy. The company has concluded its previously announced share purchase program for FY26, costing £5 million, to satisfy future employee share schemes.

The flat LFL sales figures and slight decline in store sales during the Christmas period may concern some investors. However, the company's ability to meet revised guidance and its confidence in long-term strategies could provide some reassurance. Markets should monitor upcoming preliminary results for further insights into the company's strategic and operational progress.

CEO Darcy Willson-Rymer commented, “We are on track to deliver profits in line with our revised guidance… We continue to focus on our value-led proposition to help our customers celebrate all life's moments,” reinforcing the company’s focus on customer value and operational efficiency.